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An Uber logo in the windshield of a car. Hpoto: Smith Collection/Gado via Getty Images

The New York City Taxi and Limousine commission is making its latest attempt to legislate a minimum wage for ride-hailing app drivers, reports the New York Times.

Between the lines: New York is one of many cities considering regulations to better the lives of ride hailing drivers after an MIT study determined that Uber and Lyft drivers are making a profit of $3.37 per hour. Drivers fear they aren't making enough to support themselves.

What they're doing

Cities across the world are trying to figure out how to regulate their ride hailing drivers; some are developing wage policies and unions for its drivers, while others are creating more restrictions.

  • Seattle was the first city to approve a law allowing ride hailing drivers to unionize, though it is currently being challenged in court, per Reuters.
  • In Honolulu, the mayor recently vetoed a law that capped surge pricing during busy hours for ride hailing apps.
  • In London Uber recently won back its license to operate after a legal battle where it ended up agreeing to stronger government oversight.
  • A federal judge in California ruled that 'Uber Black' drivers shouldn't get the same benefits as full-time employees because the company doesn't "exert enough control over them," per CNN.
What they're saying

New York's Taxi and Limousine Commission made its recommendation based off of a study from James A. Parrott, an economic and fiscal policy director at New School's Center for New York City affairs, and Michael Reich, an economics professor.

  • Parrott and Reich recommended a $17.22 minimum wage designed to "cover the drivers' expenses" while still providing independent contractors with a minimum of $15 per hour.

Yes, but: Most drivers see Uber and other ride hailing apps as a way to make supplemental income. Because of that, some argue there shouldn't be a required minimum wage.

Be smart: Despite some drivers seeing Uber as supplemental income, it's the main source of income for many others — especially in large cities like New York.

New York is a competitive driver market, says Harry Campbell, author of The Rideshare Guide, with about 60,000 cars driving Uber, along with 13,000 taxi medallions that come with built in fares. As competition increases, there are less passengers available per driver, which the commission argues makes a minimum wage necessary.

"There are much higher barriers to entry. There aren't part time drivers in New York."
— Campbell

Reality check: Though a minimum wage makes sense for ride hailing drivers, it won't be as lucrative in smaller markets like in the same way it is in larger cities like New York and San Francisco.

  • If wages are considered in other cities, they'll vary depending on market size and how many cars are in the market.
  • The biggest factors for how much drivers will make, Campbell said, will be how savvy drivers are and the passenger population in the given city.

Go deeper

Updated 4 mins ago - Politics & Policy

Inauguration Day dashboard

U.S. Capitol and stage are lit at sunrise ahead of the inauguration of Joe Biden. Photo: Patrick Semansky - Pool/Getty Images

President-elect Joe Biden and Vice President-elect Kamala Harris have arrived at the Capitol. Members of congressional leadership and VIPs will soon be introduced. Watch a livestream here.

What's next: Biden and Harris will take their oaths of office. Shortly after, President Biden will deliver his inaugural address. What to expect.

In photos: The Biden and Harris inauguration

Doug Emhoff, Vice President-elect Kamala Harris, Jill Biden and President-elect Joe Biden arrive at the U.S. Capitol for the inauguration on Jan. 20. Photo: Joe Raedle/Getty Images

Joe Biden and Kamala Harris are being inaugurated as president and vice president respectively in a ceremony at the U.S. Capitol on Wednesday morning.

Why it matters: Top Democrats and Republicans gathered for the peaceful transfer of power at the Capitol only two weeks after an unprecedented siege on the building by Trump supporters. Trump did not attend the ceremony.

Dan Primack, author of Pro Rata
1 hour ago - Economy & Business

Momentum builds for major antitrust reform

Illustration: Aïda Amer/Axios

President Trump's outgoing antitrust chief Makan Delrahim on Tuesday endorsed a proposal from House Democrats that would put new limits on acquisitions by large companies, during comments made at a Duke University event.

Why it matters: Momentum is building for major antitrust reform, updating rules that were written for railroads instead of routers.