Uber Stock (NYSE:UBER)
Uber Technologies (NYSE:UBER) and Lyft (NASDAQ:LYFT) continued to rise on Friday after a court blocked a possible rate hike that New York City’s Taxi and Limousine Commission was planning to impose on the ride-sharing companies.
After a court decision against the TLC, the price of both Uber stock and Lyft increased by more than 3% at midday.
Responding to the ruling, the New York Cab Workers Alliance, which represents 25,000 taxi drivers in the city, claimed a “pure technicality” forced the court to find in favor of Uber stock.
The New York Taxi Workers Alliance stated, “a few missing sentences in a Statement of Basis and Purpose does not justify refusing a raise designed to assist thousands of drivers with rent and food.” “Uber should be ashamed that this cruel lawsuit cost them millions while they were able to give its drivers just a $1.66 raise on average each trip.”
In addition, the NYTWA has requested that the TLC “quickly rework the guidelines, so drivers do not have to wait one day longer” for a wage raise.
Hundreds of Uber drivers in New York City went on strike for a whole day on Thursday. They rallied outside Uber’s Manhattan headquarters, demanding the corporation withdraw its lawsuit against them.
Last month, Uber filed a lawsuit against the New York City Taxi & Limousine Commission to prevent an “unprecedented” wage hike for its drivers.
Uber stated it would be obliged to pay an extra $21M to $23M per month if the idea went into effect. It also said that if that happened, Uber would have to increase its prices for customers.
The TLC’s approval of higher metered fees in November might lead to an increase of 7% per minute and 24% per mile in driver compensation for Uber and Lyft.
Bernstein, an investment company, said that if the rate rise had been allowed to go through, it would have led to a roughly 10% increase in Uber rider rates in New York and would have impacted trip demand overall.
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