Can Lyft and Uber drivers receive more wages without making rides costlier?

Can Lyft and Uber drivers receive more wages without making rides costlier?

This issue is discussed in narrow circles. It is also a matter of interest in regulatory organizations, governments, and companies themselves. Some people say that making drivers earn more will trigger costlier rides, which in turn will swing up the inflation rate. Others are assured that it can wipe many of them off the market and harm industry – especially when it comes to putting some proposed regulatory requirements.

In New York, the US, where Uber and Lyft operate, their drivers receive on average bigger income than drivers of other taxicab services have. The data relies on the study of over 0.5 billion rides globally made in 2018 & 2019 in the city. And the result of the analysis also has shown that in poor neighborhoods, drivers of the companies started to receive a better income than drivers of other taxicabs. Fares that passengers pay for a ride have become more normalized, as they are calculated automatically through the app, excluding a human factor.

However, making drivers earn more in NYC is reached majorly by making rides costlier – from 5% to 10%, whereas drivers got a 10% increase in their incomes on average. Thus, it becomes clear that companies don’t want to cut their margins to allow this money to go to drivers; they instead solve the issue by charging passengers more.