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In a statement to Engadget, a spokesman for Lyft said: "The rules of the TLC have hindered the chances of winning winnings for drivers and will reduce competition for the benefit of drivers and riders.
Lyft argues that he is not opposed to the minimum wage and actually supports such efforts, but feels that the way the TLC designed its rules is flawed. According to the company, TLC's requirements could result in fewer trips and, because the rule requires drivers to be paid for each way, could reduce drivers' take-home pay. It can also encourage shorter and slower journeys. Lyft also believes that the rule favors Uber, which already holds 60% of the New York market, and prevents competitors from locating in the region.
While today's decision is perceived as a loss by Lyft, the Independent Driver Guild (IDG) celebrated this decision. "The judge's message today is clear: If the hail strike companies want to operate in New York, they have to pay the drivers fairly and abide by our minimum wage laws," said the group's founder, Jim. Conigliaro Jr., in a statement. "It's a day of pride for pilots who have been organizing with the Guild for years, battling monsters in Silicon Valley, for this historic pay protection."
This decision is also a victory for New York, which has made constant efforts to regulate chairlift services. Last year, the state recognized Uber contract drivers as employees of the company, which could change the way drivers are classified. New York City has also decided to no longer issue a carpool permit for one year to limit the number of drivers on the road. Lyft and Uber both froze the addition of new drivers to New York this week, in part because of new regulations on their services in the region.
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