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Uber and Lyft have stopped accepting new pilots on their respective platforms in New York, politico reports. This decision comes after the city adopted new rules designed to curb the explosive growth of strike companies.
On its website, Uber attributes the new policy to [Taxi and Limousine Commission] regulations. "(To know Lyft 's opinion on the refusal to accept new drivers, I had to follow the registration process as a new driver.) It' s a reference to the legislation pbaded by New York City Council in December 2018, which requires mobile phone companies to pay drivers at least $ 17.22 an hour after spending.The pay formula uses a "rate of use", which represents the share of time that a driver pbades with his pbadengers in his vehicle compared to the time spent idling and waiting for a fare.
The rules penalize companies that use too many cars without pbadengers in the streets of the city. The higher the utilization rate of a company, the less it has to pay the drivers to meet the new minimum wage requirement. The rules were aimed at increasing driver wages, while addressing what many saw as a supersaturated market in New York.
In this sense, today's news suggests that rules produce the desired effect. The wage rule was pbaded several months after the city council approved a new vehicle cap for Uber and Lyft, hoping to remedy the worsening traffic congestion. This rule does not affect the ability of Uber and Lyft to ship new drivers; it simply limits the number of vehicles that can be used to board pbadengers.
Although very popular among runners, Uber and Lyft have been a source of almost constant grief for policymakers, disability rights advocates, taxi medal holders and worker groups. Critics complain that Uber and Lyft were allowed to dominate the market without having to follow many of the rules applicable to yellow taxis. This led to an overabundance of drivers that outpaced demand, resulting in lower wages and increased traffic congestion. At the time, the New York City Driver Limiting Act was seen as a potential model for other cities wishing to interfere in the industry.
Uber stopped shipping new pilots to New York on April 1, followed shortly thereafter by Lyft. In January, Lyft sued the city to block the new pay rules, saying they would create unequal playing conditions and that, in the end, their own drivers would be paid less. Three weeks later, Uber sued the city for exceeding the cap on new drivers.
"As drivers leave the area and the demand for motorcycles increases, we will again seek to add new drivers," said a spokesman for Uber.
"Because of the TLC regulations, we do not accept new drivers in New York," Lyft said. "We have a waiting list and we'll let drivers know when they'll be able to apply for a ride."
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