Newsman: The city’s Taxi and Limousine Commission on Tuesday voted to hike metered fares by 23%, marking the first such increase in a decade. Passengers are also looking at paying more in rush hour and overnight surcharges, along with higher airport flat rates, according to the TLC, the agency that licenses and regulates New York City’s taxi cabs and other for-hire vehicles.
The Taxi Workers Alliance union applauded the raise but says it is still seeking further raises so that cab drivers can take home an effective pay of $25 per hour. Unlike Uber and Lyft drivers, yellow cab operators do not have a minimum wage.
“After a year of all drivers having to choose between food and fuel, and a decade of not just stagnation but loss for yellow cab drivers in particular, we’re relieved to see the raise be voted on,” said NYTWA executive director Bhairavi Desai. “We fought hard for it, and driver unity delivered for all drivers across the industry. The work still remains to get driver income to $25 per hour after expenses.”
The fare increase is expected to go into effect by the end of the year, a TLC spokesperson said. The commission expects overall cab fares to jump by about 23% on average, while driver and medallion revenues will each increase by about a third. The increases will also bring along a 7% per-minute pay raise for app-based Uber and Lyft drivers, with per-mile compensation jumping by 24%, according to the commission.
Base fares for yellow and green taxis are going up to $3 from $2.50, with unit rates rising to 70 cents from 50, according to documents detailing the approved proposal. Rush-hour trip and overnight fees are going to $2.50 and a buck, respectively. Hailing a cab to LaGuardia Airport will cost an additional $5 and flat fares to Kennedy Airport will be $70, up from $52.
“Raising taxi fare rates and minimum pay for high-volume drivers is the right thing to do for our city,” TLC Commissioner David Do said in an statement. “This is the first taxi fare increase in 10 years, and these raises will help offset increased operating expenses and the cost of living for TLC-licensed drivers. We are confident that today’s unanimous Commission vote will keep our taxi and FHV fleets sustainable and ready to serve New Yorkers.”
the deal was Also cheering by the Independent Drivers Guild, a union funded partially by Uber that represents thousands of rideshare drivers.
“Gas prices and expenses have soared the last two years, and rideshare drivers are struggling to make ends meet,” said IDG president Brendan Sexton. “This increase to the minimum pay is critical and an important step to protect the 80,000 rideshare drivers who keep our city moving. We want to thank the Taxi and Limousine Commission staff, Commissioner Do and the Adams Administration for listening to drivers and taking action.”
The issue was metastasized by the city and lenders purposely pumping up the price of medallions in the years leading up to Uber’s cornering the market, causing many cabbies to lose their life savings on a now comparatively worthless asset when it crashed, and pile on mountains of debt. Many cabbies have committed suicide amidst the turmoil.
After rejecting a proposed settlement fund by the city, numerous taxi drivers embarked on a hunger strike outside City Hall demanding a better deal to discharge their debt, ultimately winning a better deal. In September, the TLC approved a deal with the largest holder of medallion loans to wipe out over $200 million of cabbie debt.
