Awesome News for Lyft Drivers in NYC!!

McCrank

Member
Jan 5, 2019
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Austin, Texas
What City & State do you work in?
New York, NY
It's really hard to maintain my crankiness in the face of this kind of good news! But Lyft just announced, beginning June 27th, they are going to LIMIT THE NUMBER OF DRIVERS in New York City!!
219
Yahoo! A big cheer should go up among all drivers. (Although some are too brand-dead to understand and are complaining).

New York City's TLC passed a bunch of new regulations recently on Uber, Lyft, Juno and Via. One rule was a base wage of $17.22/hour net (or about $25 in gross fares) for ride-hail drivers.

When I first heard that - I immediately knew that they would begin to limit the number of drivers on the road at any one time. They would have to. Why? Because if they have more drivers than they need then they'll have to pay each and every one of them even if they don't get any trips!

So, this is the first shot in the driver reduction wars. I have no idea why they didn't do this anyway, on their own. If they had, each driver would have made more, fewer drivers would have left and their recruitment costs would have plummeted. But nooo, they had this greedy little mindset that said, put as many drivers on the road as possible - it doesn't matter that most of them will make nothing, it only matters that there will be a driver within 2 minutes of every possible person who might call for a ride. Then their greedy minds told them to cut rates and pay drivers even less. Which meant even more idle drivers on the road because each driver was now having to work many more hours to make the same as they did a few months before.

This greedy mindset they had turned into a downward spiral - for everyone - except passengers. Drivers are losing their shirts and so is Lyft (and Uber). Passengers are getting car rides for the price of a bus but even they were having to put up with worse and worse cars and more snarly drivers.

So, this is what should have happened all along. Lyft and Uber would probably be profitable by now if they had done it (and stayed out of trying to invent their own autonomous vehicles).

What New York Drivers Can Expect: This means each driver can expect to waste less time in between trips. In fact, they'll probably go trips back-to-back. That means, if Lyft doesn't mess around with the rates, their earnings will go up.

I also expect that if drivers start earning more than the $17.22 now required by law, that Lyft will cut driver rates so that they won't for long.

I also expect Uber and the others will follow suit and do the same thing. They'll have to. Why would they pay a guy $17.22 an hour to just sit around. When this new law first came into effect, I remember thinking, 'how convenient... drivers can just go find an unbusy part of town and hang there and collect money for just sitting in their cars!' So, it was obvious from the start they'd have to put some kind of limits on it.