City Comptroller rallies against platform locks and calls for hourly wage system
On October 17, New York City Comptroller Brad Lander convened a rally alongside the New York Taxi Workers Alliance (TWA) to demand that ride-sharing companies Uber and Lyft cease their practice of “locking out” drivers from the platform. Lander emphasized the need for these companies to stop imposing unreasonable restrictions that not only limit drivers’ ability to work but also allow the companies to evade regulations and exploit drivers for profit. He also urged the Taxi and Limousine Commission (TLC) to consider implementing a hourly wage system to compensate drivers for lost earnings during times when they are not engaged with passengers.
“The platforms are using cruel and arbitrary lockout mechanisms to dodge our regulations and exploit drivers to line their own pockets,” Lander stated. He criticized previous agreements made by the TLC with third-party platforms that were supposed to end these restrictions and pause recruitment of new drivers to boost existing driver utilization. According to Lander, these commitments have not been honored, with many drivers reporting ongoing limitations that leave them frustrated. At the rally, several drivers showcased their mobile screens, demonstrating their inability to log into the work platform.
A recent Bloomberg survey highlighted that lockout practices drastically reduce drivers’ earnings, forcing them to work longer hours without proportional pay increases. Reports indicate that the platforms are able to extract over $1 billion annually from drivers through these lockouts.
In response to the coverage, Uber and Lyft claimed that the lockouts are a result of TLC regulations and denied any wrongful restrictions on drivers. Uber spokesperson Josh Gold asserted in a statement that the lockouts have been in place since the implementation of the TLC’s pay regulations in 2018.
Under TLC’s minimum wage rules, driver earnings are calculated based on their utilization rate, currently pegged at 58%. This means that for every 100 minutes of work, drivers are required to be serving passengers for 58 minutes. The TLC adjusts this utilization rate annually based on platform data to ensure that drivers’ earnings can account for their average working hours. However, during the 42 minutes when drivers are not engaged with passengers, the platforms are still required to pay them at least minimum wage. This has prompted the companies to use lockouts to artificially inflate utilization rates and reduce the number of drivers they need to pay.
Lander suggested that the TLC implement an hourly wage system to compensate drivers for their waiting time losses. TWA Executive Director Bhairavi Desai indicated that these lockout tactics could cost drivers between $5,000 to $8,000 in annual income. Shahana Hanif, chair of the City Council’s Immigration Committee, also voiced her support at the rally, stating, “We need to hold these companies accountable and ensure that drivers receive fair treatment.”
