Thursday, 18 October 2018
Latest news
Main » NYC votes to cap Uber and Lyft vehicles

NYC votes to cap Uber and Lyft vehicles

09 August 2018

The New York City Council on Wednesday agreed to cap the number of licenses for ride-hailing services such as Uber Technologies Inc for one year, dealing a blow to the companies that have relied on the largest us metro area for a major source of their revenue.

New York Mayor Bill de Blasio said he meant to sign the bills into law, which would start the 12-month period where no new for-hire vehicle licenses would be issued, with an exception for wheelchair-accessible vehicles.

Another source on the council, however, told Crain's that the legislature was still tweaking the bill in the lead-up to the vote so as to mollify the ride-hail industry while keeping the cap in place.

The package, opposed by major ride-hailing companies, is aimed at reducing traffic congestion and increasing driver paychecks in the wake of the explosive growth of for-hire vehicles.

GOP communications strategist Lee Carter said the ride-sharing cap campaign is less about driver wages and has more to do with congestion on the streets of NY.

In a committee meeting on Wednesday, New York City Councilmembers cited concerns over pay and quality of life for the 80,000-some drivers now working as independent contractors under Uber and Lyft. "It would also allow the Commission address incomes for app-based drivers, 85 percent of whom now make below minimum wage". Although a number of cities have tried to shut down Uber and Lyft altogether, or attempted to force the companies to operate exactly the same as taxicabs, this marks the first time a major city has passed legislation that will regulate ride-hailing apps as their own industry.

A Lyft spokesperson said the council's vote "will have a detrimental impact on those that have historically been underserved by taxis: communities of color and the outer boroughs".

Uber has campaigned against the legislation, warning riders that a cap on drivers will create higher prices and longer waits for cars. "Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock", de Blasio said. Lyft has acquired the Motivate bike-sharing company.

NYC votes to cap Uber and Lyft vehicles