Q&A
Details of the agreement between NYC, Uber, and Lyft to reduce driver lockouts
1:32:26
·
6 min
Council Member Brooks-Powers questions Commissioner Do about the July 2024 agreement between NYC, Uber, and Lyft to reduce driver lockouts. The discussion covers the specific commitments made, how they will be tracked, and the long-term solutions being developed to address the issue.
- The agreement includes a three-pronged approach: ending lockouts, requiring a minimum 50% utilization rate for Lyft, and pausing new driver onboarding.
- TLC is working on permanent rules to address lockouts and protect driver pay.
- A robust rule package is being developed to disincentivize access restrictions, with hopes to release it by the end of the year.
Selvena N. Brooks-Powers
1:32:26
So let's talk about the July agreement on the lockout.
1:32:31
On July 31st 2024, the mayor, and yourself announced that the city had secured agreements with Uber and Lyft to drastically reduce lockouts.
1:32:42
What specific commitments were made by Uber and Lyft in regards to reducing lockouts?
1:32:47
And how will these commitments be tracked?
David Do
1:32:50
So it was a 3 pronged approach.
1:32:52
What we wanted to do, council member, was to ensure that we had an effort that provided relief for drivers immediately.
1:33:01
A standard rulemaking process could take months oftentimes more than several months.
1:33:06
And so we wanted to make sure that we could provide relief for those drivers who were impacted by the lockouts immediately.
1:33:14
1, it would in lockouts, which it has and continues to do require Lyft to have a minimum utilization on an annualized basis of 50%.
1:33:25
And the other part was that they would not onboard any new drivers and ensure that current drivers are busy before onboarding new drivers.
Selvena N. Brooks-Powers
1:33:39
Thank you.
1:33:40
And I also like to recognize Gautam Professional Arts Academy for Council member, Crystal Hudson's District, who's joined us today.
1:33:49
Welcome.
1:33:49
We hope you enjoy yourself at city hall.
1:33:58
Were any of the agreements that were made or commitments memorialized in any formal documents?
David Do
1:34:06
Yes.
1:34:07
There was a formal document from Lyft dated in July.
1:34:12
To provide their assurance that they would reach 50% on an annualized basis.
Selvena N. Brooks-Powers
1:34:17
Can you share those documents with the committee?
Milan Pierre Lewis
1:34:21
We can.
1:34:22
Thank you.
Selvena N. Brooks-Powers
1:34:23
Are there any penalties or consequences of Uber or Lyft do not meet their commitments?
David Do
1:34:28
Yeah.
1:34:29
So one of the ways that we're looking at this is that we're working with our stakeholders, including our advocates, to ensure that we have the correct rulemaking process in place.
1:34:40
And we're gonna take on a rulemaking process despite this deal.
1:34:46
Right?
1:34:46
What I wanted to do was ensure that we work with Uber, Lyft, and many of the drivers because what I've heard from hundreds of drivers is that they wanted immediate relief from this.
1:34:57
And what we were able to achieve was immediate relief for our drivers.
1:35:02
But that doesn't preclude us from issuing new roles, and we're working on them as we speak.
Selvena N. Brooks-Powers
1:35:11
Thank you for that.
1:35:12
Now how long has Uber and Lyft agreed to pause onboarding new drivers?
1:35:17
And when would it be appropriate for Uber and Lyft to begin onboarding new drivers again?
1:35:22
Is there a utilization rate threshold?
1:35:24
Do you have an eye on it all?
David Do
1:35:27
As part of the agreement, they cannot onboard, but it is indefinite.
1:35:31
And we want to look at memorializing some of the things within the agreement permanently like not onboarding new drivers until there's a certain utilization rate.
1:35:43
Again, this is all deliberative council member, and we haven't finalized where we are yet.
1:35:49
But one of the main aspects of this is to resolve the lockout issue.
1:35:55
And perpetuity.
Selvena N. Brooks-Powers
1:35:58
Now Uber's commitment to reducing lockouts is contingent on Lyft reaching a 50% utilization rate.
1:36:04
If Lyft does not reach that rate, is there anything preventing Uber from reinstating their policy on lockouts?
David Do
1:36:11
Yeah.
1:36:12
Like I said, that we're working on rules to make permanent.
1:36:16
Some parts of those agreements, but also additional rules to ensure that we protect driver pay, and then also ensure that hopefully in the future that that loopholes like the ones that they have taken advantage are close.
Selvena N. Brooks-Powers
1:36:33
And I know you said the rules are still being worked out, but will there be any changes to next year's utilization rate calculation to offset the impact of Uber and Lyft's lockout policy from the first half of this year.
David Do
1:36:46
We're looking at ways where the new rules may address that.
Selvena N. Brooks-Powers
1:37:03
While the agreement with Uber and Lyft is a step in the right direction.
1:37:07
It's ultimately a short term solution to the larger problem of drive a lockout.
1:37:13
What specific long term solution is TLC and the administration working towards to eliminate drive a lockout?
1:37:21
And when the agreement was announced, you stated that there was a robust rule package designed to disincentivize access restrictions.
1:37:32
Can you describe what those rules would do and when the rulemaking process will actually begin?
David Do
1:37:39
Yeah.
1:37:42
I know that there have been a lot of pain for drivers during the couple of months that there were lockouts.
1:37:47
And so that is why we're not only working with our advocates to looking at what they have put in front of us, but our own rules to ensure that lockouts hopefully are a thing of the past.
1:38:02
What we're looking at is, 1, continuing onboarding restrictions, providing flexibility for drivers, and ending overall lockouts.
1:38:12
This is something that I know is incredibly important to many of our drivers but there is a very delicate balance in terms of the utilization rates that we need to be aware of because that utilization rate increases driver pay.
1:38:28
And so we're looking at that aspect as part of the solution as well.
1:38:33
But our advocates have come up with a real meaningful solutions that I am examining, diving deep, and ensuring that we we look at it deeply so that we can have the best role package available.
1:38:49
We hope that we can get the role package out by the end of this year.