Uber argues the new hike would mean shelling out an additional $21 million to $23 million a month amid the holiday season — or raising rider fares 10%.
The new rule will take effect Dec. 19 and raise driver pay, from 2019 rates, by 7.42% per minute and 23.93% per milerequiring a minimum payment of $27.15, according to the TLC.
Uber alleges the increase is “arbitrary and capricious” and “will harm riders, drivers and/or the ride-share industry as a whole,” because as rider prices will go up, the number of rides — and drivers’ wages — go down. Uber claims the TLC “suddenly” switched how it calculates how much to increase driver pay for inflation “picking an individual month or small subset of months and suddenly switching to a volatile inflation index” – which the suit says is a “drastic departure from the Commission’s past practice or any rational approach.”
The TLC also didn’t provide the records it used to make the calculation or allow the public to participate and comment on the new rule, the filing alleges.
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