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It was a busy week and weekend for Uber and Lyft, from earnings calls to TLC crackdowns in New York City. RSG contributor Sergio Avedian breaks down how Lyft, in particular, is handling these new regulations below.
A lot is happening right now in New York City and the implications could impact rideshare regulations across the entire country. But for now, what you need to know is that back in June, Lyft instituted a new policy that prevents drivers from logging on to the company’s app during periods of low demand. Now, drivers have to wait until ride requests pick up, or drive to a busier neighborhood like Midtown, Brooklyn or Manhattan.
On August 7, 2019, N.Y. TLC (Taxi Limousine Commission) extended the cap on Uber and Lyft vehicles and instituted new rules on “cruising”. If you remember, almost a year ago to the day, the New York TLC made the historic move to cap and freeze the number of rideshare vehicles in order to reduce congestion. Lyft did not actually challenge the cap itself in court, but rather focused its litigation on the TLC’s approach to setting the pay formula. Specifically, Lyft challenged the company-specific utilization rates, which they argued would lead to lower earnings over time. Of course, that’s not necessarily how drivers saw it.