The New York City Taxi and Limousine Commission (TLC) is set to hold a public hearing on February 5 to discuss proposed pay increases for Uber and Lyft drivers and address the controversial practice of "locking out" drivers from the companies’ apps. Lockouts prevent drivers from accepting rides, making it impossible for them to earn a living—despite being required to purchase or rent vehicles to transport passengers.

This practice underscores the imbalance of power between ride-hailing corporations and their workers. Essentially, Uber and Lyft tell drivers:
“You must invest in a vehicle to keep our business running, but we’ll decide when you’re allowed to work.”
So much for the promise of flexible gig work.

Uber’s Push to Cut Pay

In response to the TLC’s anticipated proposals, Uber, which controls 75% of New York City's ride-hailing market, has been lobbying to lower driver wages. The company argues that its drivers already earn more than entry-level city emergency medical technicians (EMTs) and that pay has increased by 20% over the past five years, matching inflation.

However, this comparison is misleading. While EMTs are undeniably underpaid, they receive:

• Raises based on experience (Uber drivers do not)

• Employer-funded health insurance

• Pension benefits

Meanwhile, Uber and Lyft drivers operate as independent contractors, covering their own expenses, healthcare costs, and payroll taxes—expenses that Uber’s pay calculations fail to acknowledge.

The 2019 Minimum Pay Standard & Uber’s Profits

Before the TLC introduced a minimum pay standard in 2019, three-quarters of Uber and Lyft drivers earned less than minimum wage. The rule ensured driver pay kept up with inflation—a policy New York’s general minimum wage law only adopted in 2023.

Uber, however, claims that rising driver wages have led to higher passenger fares. Data tells a different story:

• 2019–2021: As New York emerged from the pandemic, passenger fares and driver earnings rose together—while Uber’s profits grew 10% faster.

• 2021–2023: Passenger fares increased by 14%, yet driver pay remained stagnant. Meanwhile, Uber’s profit margin soared by 128%, meaning that every additional dollar from fare hikes went to Uber—not drivers.

Uber's Control Over Driver Pay & Lockouts

Uber alone sets passenger fares—not the TLC. If the company were truly worried about pricing out riders, it could easily reduce its own cut instead of suppressing driver pay.

Uber’s business model depends on onboarding more drivers than needed to meet ride demand. Once a surplus of drivers exists, Uber slashes incentives and forces pay down to the minimum, limiting earnings opportunities.

Instead of managing driver supply responsibly, Uber resorts to locking out drivers whenever the TLC considers raising driver wages. The TLC’s utilization formula—which accounts for the percentage of time drivers have a passenger in their vehicle—was designed to ensure fair pay for all working time. But when utilization rates dropped, Uber blamed the TLC and locked drivers out rather than adjust its driver count responsibly.

New York Leads the Fight for Gig Worker Rights

The TLC’s upcoming rule changes reinforce New York City’s global leadership in regulating gig work. Even Uber’s own CEO, Dara Khosrowshahi, recently admitted to The Wall Street Journal:

“For drivers, time is money.”

The question is: Will Uber and Lyft finally acknowledge that their drivers deserve fair pay for all of their working hours—or will they continue manipulating the system at drivers’ expense?