07:29 AM EDT, 06/25/2024 (MT Newswires) -- Uber Technologies ( UBER ) has begun barring access to its app for New Yor City drivers during periods of low demand in response to a minimum wage requirement, Bloomberg reported on Monday, citing a company official and drivers.

The limitations, which began last month, have reduced wages, the report quoted the drivers as saying. Uber's ( UBER ) main US competitor Lyft ( LYFT ) is considering the same move, the report said.

A New York law requires companies to pay drivers for the downtime between rides, increasing company costs, and the unpredictable lockouts can last more than an hour, affecting drivers' ability to earn a living, the report said. Companies, drivers, and the city are all blaming each other for the situation, Bloomberg reported.

"The current NYC pay formula is broken," Bloomberg cited Lyft ( LYFT ) spokesperson CJ Macklin as saying. "It forces rideshare companies to limit when drivers can earn, and therefore how much they can earn."

Uber ( UBER ) and Lyft ( LYFT ) did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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