[US] Uber locks drivers out of app at peak times in response to NYC pay rule

Uber has responded to a New York City minimum pay rule requiring companies to compensate drivers for idle time by locking them out of its app during periods of low demand, PYMNTS reports.

The pay rule is 6 years old but Uber has introduced this move over the past month and, according to Bloomberg, Lyft is now threatening to follow suit.

Uber reportedly said that the lockouts are necessary to limit non-passenger time.

Since they began, some rideshare drivers have experienced as much as a 50 per cent drop in earnings, the report said. It has become a challenge for drivers to plan work shifts and rely on driving for Uber or Lyft as a full-time job due to the unpredictability of the lockouts which can reportedly last for over an hour.

According to the report, Uber stated that the lockouts are a response to the minimum wage rule imposed by the New York City Taxi and Limousine Commission (TLC).

Uber and Lyft have reportedly blamed oneother and the TLC for the lockouts in their communications with drivers, the report said. Uber urged its drivers to lobby regulators for a rule change, while Lyft has accused Uber of wanting to change the rules to disadvantage Lyft.

The New York Taxi Workers Alliance reportedly represents 28,000 professional drivers in NYC. It has been critical of Uber’s mismanagement of driver hiring and using the TLC regulation as an excuse to avoid paying drivers for their time.

Source: PYMNTS

(Links via original reporting)

Uber has responded to a New York City minimum pay rule requiring companies to compensate drivers for idle time by locking them out of its app during periods of low demand, PYMNTS reports.

The pay rule is 6 years old but Uber has introduced this move over the past month and, according to Bloomberg, Lyft is now threatening to follow suit.

Uber reportedly said that the lockouts are necessary to limit non-passenger time.

Since they began, some rideshare drivers have experienced as much as a 50 per cent drop in earnings, the report said. It has become a challenge for drivers to plan work shifts and rely on driving for Uber or Lyft as a full-time job due to the unpredictability of the lockouts which can reportedly last for over an hour.

According to the report, Uber stated that the lockouts are a response to the minimum wage rule imposed by the New York City Taxi and Limousine Commission (TLC).

Uber and Lyft have reportedly blamed oneother and the TLC for the lockouts in their communications with drivers, the report said. Uber urged its drivers to lobby regulators for a rule change, while Lyft has accused Uber of wanting to change the rules to disadvantage Lyft.

The New York Taxi Workers Alliance reportedly represents 28,000 professional drivers in NYC. It has been critical of Uber’s mismanagement of driver hiring and using the TLC regulation as an excuse to avoid paying drivers for their time.

Source: PYMNTS

(Links via original reporting)