Data shows Uber shutdowns have major impact on city’s rideshare drivers

Many Uber and Lyft drivers in the city found themselves “locked out” of their ride-hailing apps this summer, suddenly and unexpectedly unable to work, according to new data released by the Independent Drivers Guild.

Uber and Mayor Eric Adams announced in July that the company would begin reducing the lockdowns immediately and end them entirely by early September. However, new data from the Independent Drivers Guild shows that the lockdowns have continued to have a major impact on New York City’s for-hire drivers, with 98% of drivers reporting ride-hailing app lockdowns in August, according to a press release.

The new report from the Independent Drivers Guild is based on a survey of more than 3,000 New York City for-hire drivers conducted August 26-29, 2024.

While the length of the lockouts varied, 64% of drivers reported being locked out of work for two hours or more, and more than one in three drivers (37%) reported being locked out of work for a day or more. Nearly 10% of respondents reported being locked out of work for a week or more. More than 9 in 10 drivers reported experiencing reduced income and increased stress as a result of the lockouts, according to the news release.

Other impacts of the lockdown include: 86% of people are struggling to pay their bills or rent, 80% have had to work longer hours on the road, 80% reported wasting gas and time due to the lockout, and 72% have been unable to pay their rent or bills.

In response, the Guild is launching the IDG NYC Lockout Task Force to track and report Uber and Lyft driver lockouts, hold app companies accountable, and advocate for a permanent end to unfair driver lockouts that disrupt the livelihoods of the city’s 80,000 rideshare drivers. The launch of the task force follows a months-long campaign by the Guild to end the lockouts, including organizing nearly 1,000 drivers to participate in a protest caravan to Uber’s office and sending nearly 700 emails to city leaders.

“Drivers invest their life savings and take out loans to pay the thousands of dollars a year it takes to become a licensed Uber or Lyft driver in New York City. They jump through hoops that take months to clear. For an app company to suddenly take away these drivers’ ability to earn a living is devastating and grossly unfair to the more than 80,000 New York families who rely on driving ridesharing vehicles for a living,” said Brendan Sexton, president of the Independent Drivers Guild (IDG), the nation’s largest rideshare driver advocacy group, representing and advocating for more than 300,000 drivers in the Northeast, Illinois, and Florida, including 80,000 drivers in New York City. IDG is an affiliate of the Machinists Union, which has represented FHV drivers in New York City for more than 25 years.

“Uber told Mayor Adams they would end the lockouts by early September, but we’re not going to take Uber’s word for it. This new data shows that lockouts continue to be a major problem for for-hire drivers in the city. Effective immediately, we’ve launched a New York City Lockout Task Force to track these lockouts, with a real-time reporting hub at EndLockouts.org. We urge all drivers to save the link and report to us if an app company blocks you. Take a screenshot and notify us immediately, whenever this happens,” Sexton said.

Uber and Lyft drivers in New York City pay about $5,000 a year to obtain a professional license and insurance to work in the city. Those costs climb to more than $20,000 a year when you add in the typical cost of renting a vehicle registered with the Taxi and Limousine Commission — and that’s before the cost of gas or electric vehicle charging, cleaning and maintenance. Uber and Lyft drivers in the city are all required to pass the city’s licensing exam, vehicle inspections, background checks and drug tests.