NYC Approves 5% Minimum Pay Increase for Uber and Lyft Drivers

New York City's Taxi and Limousine Commission has finalized a 5% pay increase for Uber and Lyft drivers, marking a compromise after labor advocates pushed for a higher 6.1% raise. The decision reflects growing regulatory pressure on gig economy platforms, with new rules addressing unpaid driver time and restricting company lockouts.

Uber's muted response suggests the outcome could have been worse for the rideshare giants. The company acknowledged the rules may prevent future lockouts, while Lyft remains under scrutiny for its wage practices. New York's MOVE sets a precedent other cities may follow as they grapple with balancing worker protections and platform flexibility.

The regulations now account for previously uncompensated time—waiting for rides and traveling to pickups—a significant win for driver coalitions. Though falling short of initial demands, the package demonstrates how municipalities are redefining gig work standards through incremental reforms rather than sweeping changes.