The Federal Trade Commission (FTC) is investigating whether Uber and Lyft illegally coordinated to limit driver pay in New York City. According to documents reviewed by Bloomberg, the companies are required to provide information about an agreement with city officials regarding driver compensation. This investigation casts a significant shadow over the ride-hailing industry, particularly with regards to how drivers are compensated and potential anti-competitive behavior. The companies are now under increasing pressure to clarify their relationships with city authorities and ensure fair compensation for drivers.
The investigation adds to the growing antitrust scrutiny faced by the ride-hailing giants. Uber and Lyft have been accused of engaging in anti-competitive practices in numerous markets, including setting surge pricing, manipulating algorithms, and limiting driver competition. The FTC’s investigation suggests the potential for collusion between the companies and city officials, potentially undermining fair compensation structures for drivers and creating an unfair advantage in the market. This is a critical development that could have significant implications for the future of the ride-hailing industry and its drivers in NYC.