This could get ugly. Lyft and Juno just filed a lawsuit against the city of New York to block the first-in-the-nation driver pay equity rule, set to go into effect Feb. 1st theverge.com/2019/1/30/1820…
The law requires ride-hail companies to use a nifty formula to raise drivers’ take-home pay to $17.22 an hour, an increase of 44%! Lyft (and Juno, which is also attached to the suit) says this will make it harder to compete with Uber.
This could hurt Lyft's rep as the "woke" alternative to Uber. New York Mayor Bill de Blasio sure doesn't sound happy about it.
For Lyft, this is about survival in the largest taxi market in the US. They feel the new pay rules would allow Uber to gobble up all the rides.
Update: a state judge did not grant Lyft and Juno's request for a temporary restraining order, and instead directed them to put the driver pay differential in an escrow account while they continue to negotiate with the TLC theverge.com/2019/1/30/1820…
The city is not happy about the escrow move, btw.
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