Can New York Rein to Uber?



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Want to take a cab in New York? Chances are, no matter what kind of trip you have, you are not paying a fair price. This is because there is no price, whether you take a standard yellow cab or you opt for the "dynamic pricing" of Uber, which does not leave the drivers chained to unsustainable and highly volatile wages.

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Now, the agency that oversees the city's for-profit vehicle industry, the TLC, commissioned a study to explore the increase in driver-based wages. applications. The badysis, by James Parrott of the New School's Center for New York City Affairs and Michael Reich of the University of California at Berkeley, describes a program to increase the lowest drivers to about $ 15 the hour, in line with the gradual rise of the city. the minimum wage – and the reactions of workers and industry have diverged widely.

Uber pilot surveys show the dangers of the current system. Nearly one-fifth qualifies for food coupons, and four out of 10 rely on Medicaid (as independent contractors, drivers generally lack insurance and other benefits, despite physical and mental factors of work).
For the 85% of drivers earning less than the minimum wage, the proposed plan in the badysis would increase their total hourly wage to approximately $ 17.22, which, given the rest period, would reach $ 15, more than $ 6,000. The plan badumes overhead costs of about $ 20,000 a year (although labor advocates say the actual cost tends to be higher).

The badumption is that, if profits over a period of time went below the $ 17.22 level, Uber would pay the difference. It is expected that Uber, which currently absorbs up to 25 percent of each customer's payment, is then encouraged to take a tariff reduction.

The proposed pricing formula also adjusts rates for group rides with a bonus of $ 1 per ride, encouraging drivers to take shared trips rather than individual sales. According to Parrott, with the bonus, "we expect that shared routes will reach at least 27.5% of all trips, so many drivers will benefit from this provision."
In theory, some workers might work less during minimum wage collection, but the badysis badumes that Uber could penalize drivers to discourage "turnover" on base pay – a controversial form of driver sanction by the application that drivers criticized too much. punitive. The badysis also predicts a net increase in the number of pickups per hour, which would ensure that some might possibly work harder for the same pay. But the badysis badumes that the use of the car will not increase significantly, just a few minutes per hour, which will not offset the increase in earnings

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