First minimum pay rate for sharing economy drivers is enacted in the United States

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New York city officials passed the first US minimum pay rate for drivers who work for ride-hailing apps, including Uber, Lyft, Juno, Via and any other similar business model. Drivers are low paid, and the issue is related to the fact that they are independent contractors and not employees. Transportation sharing economies do not need to make sure that drivers earn the minimum wage. Having that in mind, the city council decided that drivers are entitled to make the equivalent of $17,22 an hour after expenses. The measure aims at increasing the quality of their lives. In New York, most drivers work full-time for ride-hailing apps and 18 percent of drivers have so low earnings that they qualify for food stamps. The new regulation attacks the core of transportation sharing economies, which relies on a large number of drivers to be available at any given time, meaning competition for rides is high and drivers must work long hours. The same regulation provides that out of town trips must include payment for returning; higher pay for drivers of wheelchair accessible vehicles and prohibition on underpaying drivers on certain trips as part of incentive schemes

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