Uber to limit drivers' app access to comply with NYC regulation
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[September 17, 2019]
By Tina Bellon
(Reuters) - Uber on Tuesday will begin
limiting drivers' access to its app in New York City to comply with
regulation aimed at boosting drivers' pay and easing congestion in
Manhattan, laws that Uber says will have unintended consequences.
Uber Technologies Inc's move to lock out drivers at times and in areas
of low demand comes just months after rival Lyft Inc implemented similar
measures in response to city regulation.
Both companies oppose the unprecedented rules, saying they will prevent
drivers from earning money and cut off low-income New Yorkers in remote
areas not serviced by regular taxis, a claim the city rejects.
"Time and again we've seen Mayor (Bill) de Blasio's TLC pass arbitrary
and politically-driven rules that have unintended consequences for
drivers and riders," Uber said in a statement on Monday.
New York City's Taxi and Limousine Commission (TLC) last year
implemented several laws challenging the way ride-share companies
operate in North America's largest city, one of the industry's largest
markets.
The agency's acting commissioner, Bill Heinzen, in a statement on Monday
defended the laws, saying they held companies accountable and prevented
Uber and Lyft from oversaturating the market at drivers' expense.
New rules cap the number of app-based, for-hire cars and established
minimum pay for the city's 80,000 ride-share drivers based on how much
time they spend transporting passengers.
The laws also limit the time drivers spend "cruising" - driving to or
waiting to pick up new passengers. Starting in February, ride-share
companies have to reduce cruising rates by 5% and later by 10%, down
from currently 41%. Non-compliance can result in fines or even the
inability to operate in the city.
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A screen displays the company logo for Uber Technologies Inc. on the
day of it's IPO at the New York Stock Exchange (NYSE) in New York,
U.S., May 10, 2019. REUTERS/Brendan McDermid/File Photo
The rules are aimed at reducing congestion in Manhattan, where
ride-share vehicles make up close to a third of peak time traffic,
according to the TLC.
Uber said there was no evidence showing the steps would ease
congestion. The company supported a $2.75 congestion surcharge
implemented for Manhattan ride-share trips earlier this year.
Lyft in June changed its app to lock out drivers during low demand.
The company said it supports drivers during the change, for example
by showing them areas with high demand or times during which
restrictions are lifted.
The New York Taxi Workers Alliance, a union representing taxi and
app-based drivers, said the companies were trying to scare drivers.
"Uber is now spreading fear and disinformation to New York drivers,
attempting to convince workers that rules protecting their
livelihoods are to blame for Uber's greedy policies," the union said
in a statement.
(Reporting by Tina Bellon in New York; Editing by Dan Grebler)
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