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Hundreds of Uber and Lyft drivers brought traffic to a standstill in Manhattan on Wednesday as they protested against the companies' use of "lockouts," a practice that prevents them from accepting rides for extended periods.
The New York Taxi Workers Alliance (NYTWA), which organized the demonstration, claims over 1,000 drivers took part, lining 11th Avenue from 30th Street to 48th Street. Drivers, honking their horns in unison, demanded fair pay and the right to work without disruptions caused by the rideshare giants.
The protest is the latest in a series of actions by rideshare drivers in New York City, who have been pushing for better working conditions and wages. Since the summer, Uber and Lyft drivers have reported been unable to access the apps for hours or even days, resulting in significant income loss. NYTWA argues that the lockouts are a deliberate move by the companies to manipulate the city’s minimum pay regulations.
Central to the dispute is the "utilization rate," a metric that tracks the amount of time drivers spend with passengers versus their total logged-in time on the app. By artificially inflating this rate through lockouts, Uber and Lyft can lower the per-minute and per-mile rates they are required to pay under city law.
"Uber and Lyft have been locking out drivers to make it appear that they are busier than they actually are, reducing the amount of money drivers earn for their time on the road," explained Bhairavi Desai, executive director of the NYTWA.
Rideshare drivers struggling on low wages
Drivers at the protest said these lockouts have pushed many to the financial brink. According to Bloomberg, drivers have lost millions in earnings as a result .
One driver described how his income had plummeted by 40% over the summer.
The lockouts have not only affected drivers' livelihoods but have also sparked accusations of collusion between Uber and Lyft. The NYTWA claims a deal brokered by New York City Mayor Eric Adams this summer allowed Uber to reduce lockouts only if Lyft increased them to boost its own utilization rate. The union has called for intervention from the Federal Trade Commission, accusing the companies of engaging in anti-competitive practices.
The union is pushing the Taxi and Limousine Commission (TLC) to disregard what they call "manipulated data" when determining minimum pay rates for the next year. The TLC has acknowledged the issue, with Chair David Do stating that the Adams deal was a temporary fix while long-term solutions are developed.
Uber and Lyft have both criticized the city’s minimum pay formula, with Lyft spokesperson CJ Macklin claiming the current regulations directly cause the lockouts. "These policies are hurting drivers and riders alike, and they need to change," Macklin said.
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In addition to advocating for reforms to the pay structure, the NYTWA is supporting a new bill in the City Council that would require rideshare companies to demonstrate "just cause" before deactivating drivers. Sponsored by Queens Council Member Shekar Krishnan, the bill would allow drivers to contest deactivations lasting more than 72 hours within a 180-day period, a step aimed at protecting their job security.
Krishnan emphasized the importance of the legislation, saying, "No worker, especially our essential workers and taxi drivers, should ever lose their job overnight without protection or notice."
Worker disputes risk reputational damage for companies
As the battle between rideshare drivers and companies like Uber and Lyft continues, the broader implications of failing to properly compensate workers or provide them with full employment protections are becoming increasingly evident.
HR experts warn that companies relying on gig workers without offering them the same rights as full-time employees—such as job security, healthcare, and paid leave—risk not only legal challenges but also reputational damage.
Worker protests and public scrutiny are mounting globally, underscoring the dangers for organizations that sidestep fair treatment, which could ultimately lead to a talent drain, lawsuits, and tighter government regulations aimed at protecting employees.
