Surge pricing for taxis to be proposed in NY City Council

NEW YORK CITY (WABC) -- Changes could be on the way for taxi drivers and passengers in New York City if a proposal being introduced in New York City Council Friday becomes law.

The most notable of those changes would be surge pricing.

If you have ever ordered an Uber or Lyft ride while it's raining, you know how surge pricing works: the price goes up when demand is higher.

City council will consider whether taxis should be allowed to do the same thing.

It is part of a new $600 million bailout proposed by a commission appointed by the council to level the playing field in an industry that has been decimated by a perfect storm.

It involved the rise of ride-sharing apps combined with predatory loans that saw the artificial inflation of medallion values rise to a million dollars around 2014.

That bubble has now burst. Today, medallions are worth a fraction of what they once were.

One driver told me he works 10 hour days, 6 days a week - and last year he took home just $50,000.

"Since Uber came to the market, (business has been) moving down. Not like it used to be, not like eight, nine years ago," said Angel Lucero.

Faced with mounting debt and no way out, some drivers - mostly immigrants who barely speak English - have even committed suicide.

"We want to help these taxi drivers," said Mayor Bill de Blasio. "They've been through hell. We want to find a way to help them and their families. We all are trying to find some kind of solution, and this is an idea that might actually offer a positive way forward."

The details of the proposed bailout have not been made public, but DeBlasio says it involves a combination of public and private money.

More details are expected during the day Friday.