On Wednesday, June 18, the New York Taxi Workers Alliance (NYTWA) gathered in front of City Hall in New York City to demand that Uber and Lyft cease their arbitrary deactivation practices. They also called for the City Council to pass Intro. 276, which aims to protect drivers from being deactivated. Council Member Shekar Krishnan from Queens, the primary sponsor of the proposal, also spoke at the event.
At the rally, NYTWA President Bhairavi Desai stated that there are currently 200,000 ride-hail drivers in New York City who work tirelessly at the risk of their safety every day. However, they are constantly facing the risk of being deactivated by companies like Uber without justification, which means drivers could suddenly find themselves unemployed overnight. The proposed Intro. 276, designed to address this issue, has been stalled at the City Council while they face pressure to pass Uber’s proposal to lower driver insurance premiums.
Therefore, the union, along with ride-hail drivers, held the rally to urge the City Council to pass the protective Intro. 276 to put an end to unfair deactivation practices.
Drivers raised banners with slogans like “Stop Deactivations,” chanting phrases such as “No drivers, no Uber,” “New York relies on drivers,” and “Power to the union.”
Driver demands include shifting the burden of proof in deactivation complaints onto Uber and Lyft companies rather than the drivers themselves, ensuring that deactivations are based on valid reasons or legitimate economic factors, providing drivers with a 14-day advance written notice in most cases before service deactivation, detailing reasons for deactivation and how similar cases will be handled, implementing a “progressive discipline” approach where deactivations correspond to violations, and ensuring that drivers are aware of behaviors considered violations by the companies.
Simultaneously, Desai, on behalf of workers, demanded a fair arbitration process. She emphasized the need for an independent appeals process outside of company control through arbitration, court appeals, or collaboration with municipal entities, allowing drivers to choose the most suitable course of action. This would factor in drivers’ histories, legal standards like valid reasons or legitimate economic reasons, progressive discipline, and notifications.
Moreover, drivers would have the right to reinstatement and back pay if deactivated without valid reasons.
Another requirement is that drivers who have been deactivated in the past six years will have one year from the enactment of the law to appeal.
In recent years, there have been ongoing conflicts between drivers and Uber regarding lockouts and deactivations. Over the past decade, the for-hire vehicle (FHV) industry in New York City has seen significant changes, with an increasing number of drivers joining the sector. According to City Council data, the number of FHV licenses surged from 40,000 in 2011 to 130,000 in 2018, with the Taxi and Limousine Commission (TLC) issuing an average of 2,000 new licenses per month at that time, prompting the government to enact regulations to halt new license issuance.
However, by 2022, the government lifted restrictions on electric vehicle licenses, issuing licenses for 1,000 new cars. In October 2023, the TLC removed all restrictions on electric vehicle licenses, leading to a sharp increase in the number of electric ride-hail cars on the road.
Combined with the implementation of a minimum wage for drivers in 2019, Uber and Lyft utilized technology to enforce deactivations, restricting drivers from using the app to pick up passengers, essentially forcing workers to halt operations. This tactic led to drivers complaining about a significant decrease in their income.
Intervening, the government reached an agreement with Uber and Lyft on July 31 last year to reduce the proportion of driver app usage restrictions. According to Mr. Zhao, an Uber driver, “The phenomenon of deactivations due to lockouts seems to have disappeared. The deactivations protested today are the typical issues that drivers face. Typically, if a customer complains, Uber will shut down your app.”
Council Members Shekar Krishnan, Linda Lee, and others proposed Intro. 276 legislation to protect ride-hail drivers from the limitations imposed by Uber and Lyft. However, this proposal remains stagnant at the City Council, sparking a new round of protests by drivers.