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ibusinesslines.com October 20, 2018


NYC becomes first USA city to impose Uber/Lyft cap

09 August 2018, 04:00 | Kelvin Horton

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Uber app

New York City is poised to become the first major USA city to impose a cap on Uber and other app-based ride-hailing services.

"The City's 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion", she said, adding that the company would work "to pass real solutions like comprehensive congestion pricing".

Mayor Bill de Blasio and Corey Johnson, the City Council speaker, say the bill will help cut down on the amount of congestion on the streets of NY.

The one-year cap - which won't apply to wheelchair accessible vehicles or in certain underserved areas deemed not to be affected by congestion - is meant to make way for a study on longer term regulations and standards for the industry.

"Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock".

They said they are trying to broaden their services by reducing reliance on cars, which can be seen in Uber's acquisition of JUMP bikes and a deal with Lime scooters.


"These sweeping cuts to transportation will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs", Joseph Okpaku, Lyft's vice president of public policy said.

In a statement, Lyft decried the measure's passage - arguing the cap would make hailing a ride more hard across the city, particularly in less dense areas. That wouldn't bode well for Uber, which is considering going public next year. The drop in incomes has demoralized many drivers and the New York Taxi Workers Alliance said there have been six suicides among cab and livery drivers in recent months. The bill puts a one-year cap on new licenses for Uber, Lyft and other ride-sharing companies.

"More than 65,000 working families will be getting a desperately needed raise because of today's vote".

"We are pausing the issuance of new licenses in an industry that has been allowed to proliferate without any appropriate check or regulation", Corey Johnson, the City Council speaker, told the New York Times before the vote.

Under the cap, drivers will be required to be paid a minimum wage and ride-hailing companies will be granted licenses for wheelchair-accessible vehicles.



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