Uber Proposes Pay Cut for NYC Drivers

Uber has proposed a 6.1% reduction in the per-mile pay rate for New York City drivers, lowering it from $1.360 to $1.277, citing decreased gasoline prices as justification. This request has been submitted to the Taxi and Limousine Commission (TLC) as part of a strategy to lower ride costs in a competitive market amid declining demand. The company argues that this adjustment will help keep ride prices affordable for customers, potentially increasing ride frequency, even though it would reduce driver earnings by an average of 42 cents per trip. Uber also suggests imposing a cap of 3% for future annual inflation-related adjustments. The TLC is currently reviewing this proposal, which is part of broader discussions regarding driver pay regulations. Analysts are closely monitoring how this move could affect Uber's stock and driver retention, especially as the company faces volatility in its share price.