Uber sues New York City over decision to raise minimum fare per mile for cab drivers by 24 percent. The increases should start from 19 December. The company has urgently asked to block the measure.
The measure voted last month by the municipal Taxi and Limousine commission, which approved the increase in minimum fares, also including thedrivers of the private apps Uber and Lyft. The complaint was filed today in the Manhattan Supreme Court. Uber claims the new increase will result in forthe app an additional cost of between twenty-one and twenty-three million dollars a month, taking into account the holiday period, which will see traffic increase compared to other times of the year.
The price hike, the company added, will bring “irreparable damage to Uber’s reputation”. The new rates include, among other points, an increase of almost 24 percent per mile. The increase in the minimum fare for drivers will lead to an increase in fares for customers. To get an idea of the impact, run like thirty minutes and bytwelve kilometers will end up costing at least $27. A ride from the airport to Manhattan will go from an average of $52 to about $70. A taxi to the other airport, LaGuardia, will see an increase of about five dollars.
Uber claims that the increase, which also affects app drivers, appears “arbitrary” and “will end up harming drivers” and also those who make food deliveries because with the increase in fares, “requests will drop”. The commission first raised the minimum wage in February 2019 and then raised it twice more, in February 2020 and March of last year. It is not clear at the moment how the companies will adjust their tariffs for users, and by what percentage. Uber claims that it has “always supported the idea that drivers receive a fair compensation” but believe that the increase should be calculated “on the basis of real data and reliable methods”. The company has asked to block the commission’s measure as a matter of urgency.
