Uber files lawsuit to block NYC driver pay increase
to increase the pay rates of Uber and Lyft drivers to make up for the rise in inflation and and operational costs. The new rates were supposed to be implemented on December 19th, but now Uber has sued the commission to block the new rates from taking effect. According to, Uber said in its lawsuit that it would have to spend an additional $21 million to $23 million a month if the new rates are implemented and that it wouldn't be able to recover those costs without raising fares.
To note, drivers' per-minute rates are going up by 7.4 percent and per-mile rates by 24 percent under the new rules. That means for a 7.5-mile trip that takes 30 minutes, a driver would earn at least $27.15, which is $2.50 more than current rates. The drivers are also getting another pay bump in March 2023, based on inflation rates comparing December's to September's this year.
The company's lawsuit seems to indicate that it intends to pass the costs associated with drivers' pay increase to riders."Such a significant fare hike, right before the holidays, would irreparably damage Uber’s reputation, impair goodwill, and risk permanent loss of business and customers," its lawsuit said.
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