Post by acnedriver on Dec 12, 2022 6:47:52 GMT
Uber is suing the New York City Taxi & Limousine Commission (TLC), which last month approved a fare hike for ride-hail apps and taxi drivers amid a post-pandemic driver shortage, rising operational costs and higher inflation. The ride-hail company is attempting to prevent an increase in rates it must pay drivers in NYC by December 19.
On November 15, the TLC voted to increase the per-minute rates of ride-hail drivers by 7.42% and per-mile rates by 23.93%, a move by the commission that is meant to attract more drivers to the roads to serve increasing passenger demand. In its petition, Uber called the increases "dramatic, unprecedented and unsupported hikes," noting that earlier fare increases have ranged from 1.46% to 5.34% and "accurately reflected the impact of inflation."
Uber accused the TLC of using unsound economic principles to "achieve a predetermined result." The company said the rule would force Uber to spend an additional $21 million to $23 million per month, a cost from which the company could not recover. Uber could alternatively offset the additional payments by increasing rider fares, but the company said that would result in 10% increase for riders, which would "irreparably damage Uber's reputation, impair goodwill and risk permanent loss of business and customers."
The ride-hail giant went on to say that the challenged rule will harm riders, drivers and the ride-share industry as a whole. Uber accused the TLC of not proposing a solution to balance these risks.
source = Tech crunch
On November 15, the TLC voted to increase the per-minute rates of ride-hail drivers by 7.42% and per-mile rates by 23.93%, a move by the commission that is meant to attract more drivers to the roads to serve increasing passenger demand. In its petition, Uber called the increases "dramatic, unprecedented and unsupported hikes," noting that earlier fare increases have ranged from 1.46% to 5.34% and "accurately reflected the impact of inflation."
Uber accused the TLC of using unsound economic principles to "achieve a predetermined result." The company said the rule would force Uber to spend an additional $21 million to $23 million per month, a cost from which the company could not recover. Uber could alternatively offset the additional payments by increasing rider fares, but the company said that would result in 10% increase for riders, which would "irreparably damage Uber's reputation, impair goodwill and risk permanent loss of business and customers."
The ride-hail giant went on to say that the challenged rule will harm riders, drivers and the ride-share industry as a whole. Uber accused the TLC of not proposing a solution to balance these risks.
source = Tech crunch