Weekly Roundup: NYC Proposes Measures to Close Lockout Loopholes

NYC tries to boost rideshare driver pay and close lockout loopholes. NY State extends the deadline for Uber and Lyft drivers to claim a $328 million settlement. DoorDash and Uber temporarily suspend services in LA due to the wildfires. Delta and Uber strike a partnership agreement, replacing Lyft. We break it all down for you.

NYC Proposes Measures to Close Lockout Loopholes, Increase Driver Pay

NYC Proposes Measures to Increase Uber and Lyft Driver Pay by 6.1%
NYC Proposes Measures to Increase Uber and Lyft Driver Pay by 6.1%

Source – Bloomberg (Paywall free)

New York City’s Taxi and Limousine Commission is addressing a loophole that allows Uber and Lyft to underpay drivers by updating the calculation formulas for driver pay. This change aims to increase driver pay by approximately 6.1% to reflect inflation and prevent driver lockouts.

  • The proposal involves revising how utilization rates are calculated, which factor into driver pay. The goal is to provide fair compensation for both active driving and non-active time, countering manipulation tactics used by ride-hailing platforms that have locked out drivers.
  • New York City is already one of the most expensive cities in the U.S. for Uber rides, at $34.74 per 6.2 miles. Uber and Lyft might pass the financial burden of this initiative onto passengers and increase rates even further.
  • This move follows a Bloomberg report highlighting systematic driver lockouts, reflecting conflicts with local laws and prompting regulatory action to secure fair wages for drivers.

Deadline Extended for Uber and Lyft Drivers in NY to Claim $328 Million Settlement

Deadline Extended for Uber and Lyft Drivers in NY to Claim $328 Million Settlement
Deadline Extended for Uber and Lyft Drivers in NY to Claim $328 Million Settlement

SOURCE – NBC New York

New York Attorney General Letitia James has extended the deadline for Uber and Lyft drivers to file claims for a share of the $328 million settlement, ensuring over 100,000 eligible drivers have ample time to secure funds owed to them.

  • The deadline for filing claims has been extended to January 31, 2025. This extension allows drivers who believe they were underpaid between 2014 and 2017 to submit their claims and receive compensation for withheld funds and benefits.
  • The settlement, which comes after an investigation revealed Uber and Lyft had improperly deducted funds and denied benefits, totals $328 million — $290 million from Uber and $38 million from Lyft. It includes compensation for past pay discrepancies and new benefits such as minimum earnings and paid sick leave.
  • As of now, over 88,000 claims have already been filed. All eligible drivers are encouraged to check their eligibility here.

DoorDash, Uber Temporarily Suspend Services in LA Amid Wildfires

DoorDash, Uber Temporarily Suspend Services in LA Amid Wildfires
DoorDash, Uber Temporarily Suspend Services in LA Amid Wildfires

SOURCE – Eater Los Angeles

In response to the dangerous wildfires sweeping through Southern California, DoorDash and Uber have suspended delivery services in affected Los Angeles areas to ensure safety amidst deteriorating conditions.

  • Starting January 7, suspensions were enacted in regions including Santa Monica, Westwood, Brentwood, and surrounding areas due to the Palisades and Eaton fires. Additional areas such as San Fernando, Santa Clarita and Northridge are also impacted.
  • Many other businesses have had to close temporarily, while a few in less affected regions remain open but are facing challenges like power outages. Some restaurants in the affected areas have been completely destroyed.

Delta Partners with Uber for Loyalty Program, Ending Lyft Collaboration

Delta Partners with Uber for Loyalty Program, Ending Lyft Collaboration
Delta Partners with Uber for Loyalty Program, Ending Lyft Collaboration

SOURCE – CNBC

Delta Air Lines has announced a new partnership with Uber, linking its SkyMiles loyalty program with the ride-hailing service. This move marks the end of Delta’s eight-year partnership with Lyft, as the airline seeks to offer enhanced travel rewards.

  • Starting this spring, Delta SkyMiles members will earn rewards with Uber. They can accrue one mile per dollar spent on UberX airport rides, two miles per dollar on premium rides like Uber Comfort and Uber Black, and three miles per dollar on Uber Reserve trips.
  • For Uber Eats, customers will earn one mile for each dollar spent on orders over $40.

Is Amazon Acquiring Lyft?

Amazon Lyft
Amazon Lyft

SOURCE – YouTube Shorts

According to a recent article from The Information, Uber has been preparing for a future with robotaxis by partnering with different autonomous vehicle companies. Lyft is in a “far sorrier state, which makes it a ripe acquisition target” for Amazon. Find out more in our latest YouTube Short!

QUICK HITS

  • To promote its Uber Teen service, Uber is offering a month of free rides to teens who failed their driving exam. – NY Post
  • DoorDash is now delivering hemp CBD and THC products in select states. – Marijuana Moment
  • DoorDash is expanding its portable benefits program to Georgia in 2025. – Fast Company
  • Business Insider reviews Uber’s South African safari experience. – Business Insider

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