New York City Comptroller Brad Lander and the New York Taxi Workers Alliance are accusing ride-share companies of blocking drivers from accessing their apps, preventing them from working. They claim Uber and Lyft are using a loophole to avoid paying drivers fairly.

Holding up their phones, drivers showed lockout messages and said the companies are restricting their access to the apps, which they rely on to accept rides. Lander stated that the lockouts are a way for app companies to exploit a 2018 law meant to protect drivers.

“The lockouts are part of a strategy by Uber and Lyft to cheat that 2018 law by artificially increasing what’s called their utilization rate,” said Lander.

The lockouts are tied to rules implemented by the Taxi Limousine Commission after a 2018 study revealed that 85% of drivers were earning less than minimum wage. In response, the TLC established a pay formula to compensate drivers not only for their time driving passengers but also for the time they spend waiting for trips. However, advocates claim companies have now limited driver access to avoid paying for that downtime, a tactic that has left many drivers struggling.

"I'm in debt due to these lockouts. With these, my financial life is miserable and a tragedy," said Saif Aizah, a driver impacted by the restrictions. "Some days I would spend most of the day driving around wasting fuel and time. That puts a lot of strain on my mental health.”

NYTWA executive director Bhairavi Desai also voiced strong criticism of the ride-share companies’ actions. “They’re inflicting this pain this year in order to cheat drivers out of pay for next year. It’s just unacceptable, and it doesn’t have to happen. We have regulations,” said Desai.

The NYTWA is urging the TLC to close this loophole and protect drivers. In response, TLC Commissioner David Do said the commission is aware of the issue and working to address it.

"The harmful lockouts we've recently seen happened because multibillion-dollar companies intentionally exploited loopholes in our minimum pay rules to avoid paying hardworking drivers more. This defies the intention of our rules and the underlying Local Law, so we are in the process of amending and tightening those rules. Drivers are more than what Uber and Lyft refer to as 'supply': they are human beings who deserve the protections our city intended,” Do said.

Lyft unsuccessfully sued to stop the pay rules in 2019 and again in 2022. While Uber stopped its lockouts in September following pressure from the city, the issue persists with Lyft. The TLC says it is working with the City Council on potential amendments to close these loopholes and ensure drivers are treated fairly moving forward.