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New York City became the first US city to set a minimum wage for Uber

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New York City is the principal US city to receive the lowest pay permitted by law for drivers working for ride-hailing administrations like Uber and Lyft.

The city’s Taxi and Limousine Commission (TLC) said on Tuesday that it passed decides that will require “high volume” drivers of for-enlist vehicles to get a wage for each excursion that compares to $27.86 every hour, or $17.22 after costs. The principles will go live in mid-January.

“New York City is the main city internationally to perceive that the huge number of people who are in charge of furnishing progressively well-known rides that start with the pinch of a screen has the right to make a decent wage and security against organizations from singularly diminishing it,” TLC seat Meera Joshi said in an announcement.

As indicated by the commission, the guidelines will result in what could be compared to a $10,000 yearly raise for 96% of New York City’s Uber, Lyft, Juno, and Via drivers. A report authorized by the TLC found that middle profit for high-volume drivers of for-contract vehicles diminished by over 10% somewhere in the range of 2016 and 2017.

Delegates for Uber and Lyft revealed to Business Insider that the organizations couldn’t help contradicting the wage floor, saying it would negatively affect costs and driver conduct.

“The TLC’s execution of the City Council’s enactment to expand driver profit will prompt higher than should be expected toll increments for riders while passing up on a chance to manage to clog in Manhattan’s focal business locale,” an Uber delegate said.

“The TLC’s proposed pay tenets will undermine rivalry by enabling certain organizations to pay drivers to bring down wages, and disincentives drivers from offering rides to and from territories outside Manhattan. These tenets would be a stage in reverse for New Yorkers, and we ask the TLC to reexamine them,” a Lyft agent said.

A Via delegate did not show that the organization contradicted the wage floor.

“As the business pioneer in driver income in New York City, we are anticipating working with the TLC on actualizing this standard,” the delegate said in an announcement.

Juno did not quickly react to Business Insider’s ask for input.

The New York City Council in August cast a ballot for building up the lowest pay permitted by law for ride-hailing drivers and keeping ride-hailing administrations from procuring new drivers for a year. The choice came after a report from transportation expert Bruce Schaller that said ride-hailing administrations expanded movement clog.

In July, the New York Unemployment Insurance Appeal Board issued a decision that requires Uber to give joblessness advantages to its drivers.