Adjusting the Expense Component of the High-Volume For-Hire Vehicle Minimum Pay Standard

Considering that the cost of operating a private vehicle has risen considerably over the past two years, it is essential that the Taxi and Limousine Commission adjust the per mile component of the high-volume for-hire vehicle (FHV) minimum compensation standard.

Past studies by CNYCA and colleagues on the subject supported the implementation of the New York City FHV minimum pay standard, and have verified its beneficial impact to both driver compensation and service delivery. The proposed rule, which would use the transportation component of the regional Consumer Price Index (CPI-U) series to adjust per-mile costs borne by drivers, is actually fairly conservative, but provides for a fair and reasonable adjustment that should be put into place.

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