Rideshare Companies, Drivers Opposed to New Rule

On the face of it, the proposed rules change seems straightforward. The city's Taxi and Limousine Commission wants to prohibit drivers affiliated with one company for working for another, barring an agreement between the different bases. The TLC says there are practical reasons for the change, involving insurance, record-keeping and accountability.

But in the hyper-competitive rideshare market, the battle for drivers is fierce. As Josh Mohrer, Uber's general manager in New York put it, "the decision before you affects thousands of lives."

Both Uber and Lyft are opposed to the TLC's new rule, but for different reasons. For Uber's part, Mohrer said the company was opposed to the new rule because it meant having to move office space and submit trip data it considered a violation of privacy. "It's a real process," he said. "It's hard." 

Mohrer might as well have cued up a thousand tiny violins, and TLC commissioner LaShann DeArcy was openly skeptical. "I gotta tell you," she said, "that resonates with me, but not in a way that I think is helpful for you. You're saying the entry for barrier for a livery base is so high that your multi-billion dollar company couldn't do it?" The standing-room-only crowd broke into scattered applause.

Meanwhile, a Lyft executive warned of potential dire consequences if Uber won the driver war. "If you want to grow and grow and grow, ultimately you want all of the drivers," said vice president David Estrada. "What happens when a monopoly is formed?...Consumers have to pay higher prices."

A number of drivers also testified that they liked having the freedom to work for multiple companies. "Partnering with multiple bases makes my life easier," said one black car driver. "The proposed rules will simply take my freedom away."

Another said: "I swear to God, I'm already at the mercy of the base owner. They tell me what time to work, what time to go home."

The hearing lasted three hours, but the TLC deferred a vote until a later date.