A City Council committee delayed a vote on an ordinance to raise wages for ride-hailing app drivers, delivering a small victory for companies like Uber, which says the company could dump 10,000 drivers in Chicago if the ordinance is passed.
A vote scheduled in the Workforce and Development Committee was pushed until Monday, giving alderpersons more time to press ride-hailing app company representatives on a proposed ordinance that would pay drivers while they worked on the app, even when there isn’t a passenger in their car.
If the committee passes the measure, City Council could call it for a vote as early as Wednesday.
Supporters of the ordinance filled the public gallery of City Council chambers as a panel of representatives from ride-hailing companies and drivers debated whether the ordinance could either drive up fares and force companies to cut drivers to maintain profitability, or help drivers earn a reasonable wage and additional security.
Several alders pointed to Uber’s profit of $2.2 billion in 2024, and the CEO’s compensation of over $30 million, as proof Uber could withstand an increase in driver pay.
“And you tell them that you cannot give them the minimum wage,” Ald. Byron Sigcho-Lopez (25th) said.
Chairman Ald. Michael Rodriguez (22nd) told the committee the main issue during the months-long negotiations with ride-hailing companies and advocates remains the issue of either applying a minimum wage, which the companies prefer, or promising a portion of the fares for drivers, which advocates says could properly compensate drivers for car expenses.
The newly amended ordinance, first introduced in 2023, would ensure drivers receive a $7 minimum payment per trip. Drivers would be paid $1.50 per mile and 62 cents per minute, with those numbers being updated yearly with inflation.
Criminal penalties would also be created for people who assault drivers, similar to laws protecting emergency medical technicians.
The ordinance also clarifies why drivers can be deactivated from the apps. The rules require companies to give drivers seven-day notice for most deactivations and create an appeal process for drivers. The policy would also force companies to share a breakdown of a driver’s earnings and the rider’s fare.
Ride-hailing companies have been pushing back on the ordinance publicly.
Uber spokesman Josh Gold, in a letter sent this week to Rodriguez, said the company may have to cut 10,000 drivers in Chicago if the ordinance passes. Uber may also have to restrict Chicago-based drivers from doing trips outside of the city, curtail service in less busy areas and off-peak hours, and possibly have drivers buy their own commercial insurance.
Gold warned Chicago not to follow the path of New York City, which passed a similar policy for ride-hailing app drivers in 2019 and saw a 6% decease in the number of drivers. Gold said drivers in New York, who earn a minimum wage, must now apply to work in shifts. Chicago’s ordinance needs a provision like that or Uber may need to cut thousands of part-time drivers, Gold said.
Beyond hurting business, Uber’s tax contribution to Chicago could drop $20 million a year if the ordinance is passed, Gold said.
Andrew Greenblatt, policy director of Independent Drivers Guild, told the committee that the ordinance would fix driver issues with pay and safety. He warned that the ride-share companies were using scare tactics and would oppose any measure that cuts into their profit margins.
