How much gig economy workers actually take home each month is a hotly contested topic, especially as companies like Uber fail to disclose what their contractors earn.

With those platforms failing to do much to assist in that regard, it falls to those working at the municipal or governmental level to help, which is what New York City mayor, Eric Adams, did this week.

Adams confirmed in an official announcement that Taxi and Limousine Commission (TLC) drivers for ridesharing platforms will see their minimum pay rates increase by 5.3 percent.

“Drivers have served on the frontlines and have been there for their neighbors — driving them around the city and delivering food to those in need. This is about respect and paying each one of these individuals a fair and decent wage. I am proud to stand with these drivers and honor their sacrifice by giving them the raise they have earned,” said Adams.

It therefore means the likes of Uber and Lyft will need to pay their New York City drivers a minimum of $1.161 per mile and $0.529 per minute, which translates to the aforementioned 5.3 percent raise.

It should be welcome news for drivers in the region, who now have the ability to earn an additional $4 000 (~R60 832) per year.

“This raise helps keep the city’s promise to keep app drivers out of poverty wages and on the path to a dignified and secure living,” highlighted Bhairavi Desai, executive director for New York Taxi Workers Alliance (NYTWA) in a statement.

“Uber, Lyft, and Via drivers are part of the largest private sector workforces in the state. They are the anchor in many neighborhoods and are majority immigrants of color working to transition out of poverty. We all know the price of basic needs, like bread and milk, have gone up, and, for drivers, so have operating costs, like fuel and repairs. This 5.3 percent raise will help thousands of families find security and give many the chance to live under better conditions,” he added.

The raise is effective 1st March 2022 and potentially impacts 90 000 gig economy drivers in the region.

Whether such a change could be implemented in South Africa, where gig workers have proved essential as a result of the pandemic, remains to be seen.

With official figures on local Uber driver pay unknown, it is estimated by job search site Indeed that the average salary is R5 631. An increase like the one announced in New York City, would certainly help then.

[Image – Photo by Thought Catalog on Unsplash]