In a decisive shift that rewrites the playbook for app-based driving in New York City, the Taxi & Limousine Commission (TLC) has approved a 5% increase in minimum pay for Uber and Lyft drivers, along with fresh curbs on sudden “lockouts” from platforms. These new rules—set to take effect August 1—aim to balance rising costs with fairer driver treatment, reshaping how companies manage access and pay. With pay per trip now set to reach $29.07, this measured yet bold move stirs the city’s ride-hail economy with quiet but firm authority.

🟩 STORY HIGHLIGHTS:

• Minimum pay increased by 5%: New standard trip rate raised to $29.07.

• App lockout restrictions introduced: 72-hour notice required; drivers allowed up to 16 hours of platform access per shift.

• **NYTWA claims lockouts caused up to 25% income loss for drivers in 2024.

• Economist recommended 6.1% pay raise, but TLC settled on 5%.

• Future pay adjustments to follow rulemaking process instead of automatic annual hikes.

In a decision expected to reshape the working conditions of thousands of ride-hailing drivers in New York City, the Taxi & Limousine Commission (TLC) on Wednesday unanimously approved a series of rule changes aimed at improving earnings and protecting job access for drivers working under high-volume for-hire vehicle services such as Uber and Lyft. The revised policies include a 5% increase in the minimum driver pay standard and new restrictions on app-based “lockouts” that have long been criticized by driver advocacy groups.

Effective August 1, the updated pay formula will raise earnings for a typical 30-minute, 7.5-mile ride to $29.07. This marks a modest but symbolic improvement in driver compensation, reflecting a 5% increase from 2024 rates and a 26% rise since the city first implemented a structured pay system for app-based drivers in 2019.

The TLC’s move follows over a year of sustained organizing and policy engagement from the New York Taxi Workers Alliance (NYTWA), which accused ride-hailing platforms of using lockouts to suppress earnings by manipulating utilization rates — a core metric used by the city to determine per-trip driver pay. According to NYTWA, these lockouts often occurred mid-shift, leaving drivers unable to earn income and effectively stranded while logged out of the platforms they rely on for work.

While the dollar increase may appear incremental, advocates emphasized the deeper significance of the regulatory shift. Speaking after the vote, NYTWA Executive Director Bhairavi Desai said the new rules represent a crucial win in the broader fight for driver protections:

“The new Taxi & Limousine Commission rules are a victory for Uber and Lyft driver members of NYTWA to end lockouts and protect driver incomes,” she said.
“Lockouts are an attack on driver pay and driver dignity.”

NYTWA has long argued that app-based companies intentionally restricted driver access during off-peak hours or in lower-demand areas in order to maintain artificially high utilization rates. These inflated figures, in turn, enabled companies to minimize the wages they were required to pay under the city’s formula. The union claims that many drivers saw their earnings drop by as much as 25% in 2024 due to such tactics.

In response to these allegations, the TLC adopted a new set of regulations requiring companies to provide at least 72 hours’ notice before limiting a driver’s ability to log into the app. Additionally, once a driver begins a shift, the rules now require platforms to permit continuous access for up to 16 hours, with limited exceptions.

During the June 25 meeting, TLC Chair David Do described the changes as an important step toward ensuring that drivers have uninterrupted opportunities to work and earn.

“These proposed rules not only go a long way towards closing this loophole and providing further lockout protections for drivers,” he said,
“but they also provide a sensible pay increase based on inflation and increased expenses.”

Do further acknowledged the frustration many drivers faced under the previous system, where access to their livelihood could be revoked mid-shift without warning, disrupting their ability to earn.

The TLC had enlisted Dr. James Parrott, an economist at the Center for New York City Affairs, to assess the true costs faced by drivers and recommend adjustments. In a December 2024 report, Dr. Parrott proposed a 6.1% increase in per-mile rates, citing higher operating costs — particularly for electric vehicles and vehicle rentals. His research was based on survey responses from thousands of drivers and market data on vehicle expenses.

However, both Uber and Lyft pushed back during the public comment phase in February, raising questions about the reliability of survey data and assumptions around vehicle depreciation. Following the pushback, the TLC and Dr. Parrott conducted a supplemental review, incorporating trade-in values from Kelley Blue Book to adjust the cost model, which ultimately lowered the final raise to 5%.

In a statement to the press, Lyft expressed cautious relief that Parrott’s full recommendation was not adopted:

“While these changes are a step in the right direction,” a Lyft spokesperson said,
“we still have concerns that the underlying pay formula will still deprive drivers of earning opportunities, drive up prices for riders, and reduce ride availability, which isn’t good for anyone – especially the drivers who depend on steady demand to make a living.”

Uber, on the other hand, welcomed aspects of the rule changes, particularly the TLC’s decision to abandon automatic annual adjustments based on utilization rates. According to the company, this move represents the first official recognition that the existing system — which incentivized companies to restrict access in order to maintain utilization metrics — was inherently flawed.

“This shift marks the city’s first formal acknowledgment that time and distance-based utilization should be treated differently,” said Uber spokesperson Freddi Goldstein.

Uber has consistently criticized the current pay formula, arguing it forced platforms to make difficult decisions around driver access in order to remain compliant with utilization-driven wage standards. While the company did not directly comment on the new driver protections against lockouts, it emphasized that the revised model offers a more stable framework going forward.

Looking ahead, the TLC clarified that future pay increases will no longer follow an automatic schedule. Instead, rate changes will be considered through a formal rulemaking process, allowing the Commission to weigh additional factors such as changes in citywide travel trends, inflation, vehicle costs, and shifts in company practices — including the use of waitlists and access restrictions.

In its final statement, the Commission described the new approach as one that offers greater transparency and flexibility, better suited to the dynamic nature of the for-hire vehicle industry.

For the thousands of Uber and Lyft drivers navigating New York City streets each day, the new rules may offer a measure of predictability in an otherwise uncertain job environment — and, perhaps more importantly, a sense that their voices are beginning to shape the policies that govern their labor.

The New York City Taxi & Limousine Commission’s latest decision signals a pivotal moment in the evolving dynamics of app-based transportation. By introducing a structured pay increase and decisive action against exploitative lockout practices, the city has taken a firm step toward reinforcing fairness and stability in the gig economy. While platforms like Uber and Lyft remain cautious, the new rules highlight a growing insistence on accountability and transparency. For thousands of drivers navigating the city’s streets, these reforms offer not only improved earnings but also renewed recognition of their essential role in urban mobility.

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