New York is the first city in the country to set a minimum pay rate for drivers who work for app-based companies.

The city's Taxi and Limousine Commission voted on Tuesday to enact a pay floor of $17.22 per hour, after expenses. This will affect around 70,000 drivers in the city, some of whom could see a yearly raise of $9,600 when this is implemented in January of 2019.

TLC Commissioner Meera Joshi says the new standards are based on data from drivers as well as a report it commissioned to determine livable wages by the mile and minute.

"When we looked at all of the pay records for [high-volume] drivers over the last year, the outcome was that 96% of these drivers are making less than a minimum wage," said Joshi.

Joshi says the TLC receives data from companies like Uber and Lyft, and is able to monitor every driver and every trip. When the new guidelines go into effect in January, it plans to issue summonses to these companies if they fail to comply with the new pay standards.

In a statement, Lyft said the TLC's new rules will undermine competition by allowing certain companies to pay drivers lower wages, and that it will discourage drivers from giving rides to and from areas outside of Manhattan. Uber also issued a statement, saying riders will ultimately pay the price, with literally higher costs and fewer alternatives to mass transit.

But Commissioner Joshi says: Don't underestimate customer empathy.

"If they know that the driver that’s behind the wheel is now making a living wage, and maybe they waited a minute more for that car, they’re certainly happy to do that," Joshi said.