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Uber and Lyft exploit loophole in driver pay law, facing backlash from drivers.

Struggling ride-hailing drivers in New York City face financial hardships amidst ongoing disputes between companies and unions over app lockouts.

New York City has been at the forefront of setting minimum pay rates for drivers working for ride-sharing companies like Uber and Lyft. However, a loophole in the law has led to lockouts for drivers, impacting their ability to earn a decent income. As a result, the city is considering changes to the law, sparking competing campaigns from both sides to sway the decision.

Earlier this year, Uber and Lyft implemented lockouts, preventing drivers from accessing the apps during specific times. The companies argued that the city’s minimum pay law, which factors in the time spent transporting passengers, forced them to take this action. This move has had a significant financial impact on drivers like Amadou Diallo, who has seen his earnings drop from up to $350 per weekend day to less than $200 due to the lockouts.

While Uber has stopped the lockouts following a temporary agreement with the city, Lyft has continued with the practice, further straining drivers’ incomes. For Mr. Diallo, not being able to sign into Lyft for an entire week in New York has forced him to travel to New Jersey to work. The financial strain has led him to make sacrifices like moving in with roommates, cutting back on dining out, and limiting his spending on clothes.

The situation highlights the ongoing battle between ride-sharing companies and drivers over fair wages and working conditions. As New York City considers revising its laws to address these issues, both sides are intensifying their efforts to influence the outcome.

Source: The NY Times

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