Uber filed a lawsuit against the New York City Taxi & Limousine Commission (TLC), which approved a fare increase for ride-hailing apps and taxi drivers last month, citing a post-pandemic driver shortage, rising operational costs, and higher inflation. The ride-hailing service is attempting to avoid an increase in the rates it must pay drivers in New York City by December 19.
On November 15, the TLC voted to raise ride-hailing drivers’ per-minute rates by 7.42% and per-mile rates by 23.93%, in an effort to attract more drivers to the roads to meet rising passenger demand. Uber accused the TLC of employing questionable economic principles in order to “achieve a predetermined result.” According to the company, the rule would force Uber to spend an additional $21 million to $23 million per month, which it would be unable to recover. Uber could offset the additional payments by raising rider fares, but the company claims that doing so would “irreparably damage Uber’s reputation, impair goodwill, and risk permanent loss of business and customers.”
