Uber, Lyft to pay NYC drivers more by end of year

The minimum pay rate for drivers in New York City will have to be increased by the end of the year. Rise in operational costs is one of the reasons for the fare increase.

The per-minute and per-mile rates were increased by the Taxi and Limousine Commission. The yellow and green cab rates will go up by 23% by the end of the year.

The commission wants to increase passenger demand by attracting more taxis and drivers to the road.

Taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city. The first taxi fare increase in ten years will help offset increased operating expenses and the cost of living for licensed drivers.

A sample trip of 30 minutes that goes 7.5 miles will require a minimum driver pay of $27.15, which is up $4 from original rates and more than $2 from the current rates. This is still a minimum and companies can pay more than that. The companies will decide how much to charge.

It is not clear how this will affect the customers of both companies. The metered ride drop rate is going to be $3.00, up from $2.50. The unit rates will increase. The increase in passenger fare is about 22%. The cost of a ride has gone up.

The minimum driver pay rate was increased by 5.3% in February. On top of that, today's fare hike is happening. There will be an additional rate increase in March which will be based on inflation over the course of the year.

Last month, the agency urged the city to vote against the proposed fare increase because it meant the agency would be locking in this summer's high gas prices in perpetuity.

“While moving away from dynamic pay rates was long overdo, passing a rule that expressly says it wont be guided by economic reality going forward hurts riders, drivers and the agency’s credibility,” said Freddi Goldstein, an Uber spokesperson.

The New York Taxi Workers Alliance applauded the fare raise and said it would give driver income a boost.

It's important for us to get a raise. "After the $2300 a month I pay in rent, the expensive cost of gas and food, what do I have left at the end of the day?" asked Mamadou L Diallo, a member of the NYTWA. It is not enough for our families, parents, and children. New York is a 24 hours city. We should get this raise.