PAID BETWEEN FARES: New York City defies trend by regulating a minimum pay standard for Uber drivers
- Perry Richardson
- 43 minutes ago
- 2 min read
New York City has taken a unique approach to REGULATE how much Uber drivers are paid, establishing a minimum pay standard unmatched by any other city or state. This policy ensures drivers can cover core expenses such as vehicle maintenance, fuel, and parking, which are typically excluded in other regions.
The city’s Taxi and Limousine Commission (TLC) introduced these rules in 2018 after data showed that 85% of app-based drivers were earning below minimum wage. The regulations were based on a comprehensive review of pay structures, which required companies to supply detailed data on driver earnings and working conditions.
Unlike the typical model used by ride-hailing platforms—where drivers are classed as independent contractors and only paid when a passenger is in the car—New York’s policy recognises downtime and vehicle-related overheads. This move was designed to create a more sustainable and safer industry by offering a consistent income floor.
While companies such as Uber and Lyft raised passenger fares in New York following the policy, the city later demonstrated that similar fare increases occurred in places like Chicago, where no such pay rules exist. This suggested that rising fares were more aligned with broader corporate strategies than regulation alone.
Driver expenses have risen significantly in recent years, from rising fuel costs to frequent maintenance and the costs associated with EV use. One driver reported spending £40 a day on petrol, £200 a month for garage space, and frequent costs for tyres, oil changes and cleaning. The updated pay structure helps reflect these new financial realities.
New York’s system is now seen by many drivers as the leading model for other cities considering how to address the pay gap and working conditions in the ride-hailing sector.
