App-based taxi services such as Lyft and Uber become dearer from today. This is because New York’s new driver minimum wage law goes into effect. This Lyft and Uber price hike was expected ever since this new law was announced. Now that it has gone into effect – the price hike is official. The Uber price hike was announced by the company via a blog post.
Uber stated that the company fully supports the spirit of this law. The company added that this allows the drivers to get the best earnings opportunity. Addressing the riders about the Uber price hike, the company said that they want to ensure that the rides remain as affordable as possible.
Uber Price Hike: Impact on Riders
Uber has not specified the exact amount of price hike that the riders will have to face. The company said that the price of the trip would vary based on time and distance. However, here are the two things that Uber informed the riders about:
- New York State Congestion Surcharge: Riders will have to pay an extra $2.75 per trip when passing through Manhattan below 96th street. For pool riders, it would amount to $0.75 per trip.
- Out of Town Surcharge: Riders heading out of New York will also have to pay an Out of Town surcharger which will ensure the drivers are compensated for their ride back.
Uber Price Hike: Impact on Drivers
In an e-mail to the drivers, the company notified that the price hike might result in fewer riders hailing taxi services. However, this is expected to be a short-term impact.