Uber Mass Layoffs Coming To New York State?

The rideshare providers are claiming that new regulations could force them to lay off thousands of drivers.

There is a back-and-forth going on between rideshare providers and the city of New York and it could end up costing people jobs.  It appears as though the city wants to ensure that the drivers are getting a reasonable wage.  They are currently trying to raise the minimum amount that they get paid.

However, companies like Uber are claiming that if they do that, they would need to make fares more expensive in order to cover the wage increase.  If fares are more expensive, they believe fewer people will use the service and they will not need as many drivers.

You can increase prices all you want — but if fewer people are taking fewer trips, you end up hurting the people you’re trying to help.” - Rodrigo Moser, Uber's senior economist 

There are currently tens of thousands of people driving for Uber and there is a waitlist of over 15,000 people who would like to join them.  According to the New York City Uber Driver Earnings and Expenses Study, Full time drivers in New York City make $52,900 a year on average after expenses.

Uber is saying that if the wages go up, they will have to raise the fares.  If they raise the fare, they assume with the multiple modes of transportation that people can take, that people will take fewer rides.  If there are fewer rides, they need fewer drivers.

It will all depend on the TLC (Taxi and Limousine Commision) and their decision to raise (or not raise) the minimum pay.  If this can happen in New York City, could it happen anywhere else in the state?