The U.S. Federal Trade Commission is probing whether Uber Technologies and Lyft illegally coordinated to limit driver pay in New York City, according to documents reviewed by Bloomberg News.
So-called civil investigative demands, which are similar to subpoenas, were sent to both companies in the final days of the Biden administration. The demands compel the companies to turn over information within 30 days about an agreement with New York City officials over how drivers are compensated.
The FTC declined to comment.
Uber spokesman Josh Gold confirmed that the company received the information demand from the FTC on Jan. 21, signed by former FTC Chair Lina Khan, who stepped down at the end of the Biden administration. “We are confident that our actions here were reasonable and appropriate” under New York City rules, he said in an email, adding that Uber would work with FTC staff to provide whatever it needs.
Lyft spokesman CJ Macklin also confirmed the company received the FTC request. He said in an email that the company takes antitrust law “very seriously.” Macklin added that Lyft “fully complied with antitrust law throughout this process and we look forward to working with the FTC on this matter.”
July agreement
Uber and Lyft entered into the agreement with New York City in July 2024 to reduce rideshare lockouts that had resulted in reduced driver pay.
Gold, the Uber spokesperson, said there was never “an agreement or deal” with Lyft itself. “We were neither conspiring nor was our goal to limit driver pay,” he said.
In an announcement at the time, the New York City mayor’s office referred to an “agreement” with Uber and Lyft in a press release. That agreement could violate antitrust law if the deal allowed Uber and Lyft, which are direct competitors, to coordinate on driver hiring and pay, according to an FTC staff memo also reviewed by Bloomberg.
The FTC isn’t investigating New York City officials. But a key focus of the inquiry is to what extent city officials helped in crafting the agreement and under what legal authority, the FTC said in the memo. The companies may have some defense because of the involvement of New York City’s government, but more investigation is needed to substantiate that, according to the memo.
The agency’s investigations don’t always lead to enforcement actions, but the FTC can file civil complaints over alleged antitrust violations in federal court or via an in-house administrative proceeding.
Next steps
Decisions about next steps in the investigation now fall to Chair Andrew Ferguson, who was named by President Donald Trump to lead the agency. Ferguson can continue the probe, take steps to slow it down or close it altogether.
As part of its inquiry, the FTC is seeking communications between the companies as well as with Adams’ office and the NYC Taxi and Limousine Commission. The agency also requested a copy of the agreement itself, according to the documents.
The New York City mayor’s office referred comments to the TLC.
“New York became the first city in America to pass minimum pay rules for hardworking rideshare drivers in order to protect them and ensure they are fairly compensated, and we continue to strengthen those protections,” said TLC spokesman Jason Kersten.
The policy was designed so that drivers could make a living wage for the time they’re available for work, even if they aren’t carrying riders.
“As promised, we have introduced new rules designed to deter future lockouts by the multibillion-dollar companies who have exploited loopholes in our regulations,” Kersten said.
The agency is accepting comments and will hold a public hearing Wednesday on its plan.
Systematic lockouts
A Bloomberg News investigation in October showed how the companies systematically locked drivers out of their platforms to save the companies millions in pay. The lockouts temporarily prevented drivers from logging into the apps — erasing working time from the record before citywide calculations of minimum pay for drivers.
Under the agreement Adams announced with Uber and Lyft in July, Uber pledged to phase out lockouts so long as Lyft increased the time its drivers are carrying passengers to at least 50% of their working time. NYC Taxi and Limousine Commissioner David Do said last year that the agreement was a short-term solution. Uber ended lockouts in September, Gold said, and Lyft has also ended lockouts recently, according to Macklin.
The New York Taxi Workers Alliance, which represents more than 28,000 drivers, raised alarm bells about the agreement last year. The group has alleged that the agreement between the mayor, TLC, Uber and Lyft allowed the companies to exploit a duopoly and engage in illegal collusion in violation of antitrust law.
