Uber and Lyft will have to raise the minimum pay rates for drivers in New York City, according to Engadget. The fare increase coincides with a post-pandemic driver shortage that is largely caused by rising operational costs.
The city’s Taxi and Limousine Commission (TLC) decided to raise the per-minute and per-mile rates for drivers of ride-hailing services by 7.42% and 23.93%, respectively. By the end of this year, rates for yellow and green cabs will also rise by 23%. In order to meet rising passenger demand, the commission anticipates that raising pay rates will encourage more taxis and drivers to hit the roads.
