New York To Cap Uber, Lyft And Other Ride-Hail Services

The City Council is trying to undo the ridesharing revolution

The Council also voted to set a minimum driver wage equivalent to the yellow cab wage for app-based drivers.

At the end of July, we learned that the New York City Council was looking into capping the number of ride-sharing vehicles in the city while it tried to figure out related issues like congestion.

New York Mayor Bill de Blasio praised the vote, saying the council's actions will ease congestion in city streets and protect more New Yorkers from earning less than minimum wage. Ride-hailing services have an estimated 80,000 of the 120,000 available for-hire vehicle licenses in NY, the companies say.

The effort to cap the services in New York, Uber's largest US market, was opposed by ride-hailing businesses, including Uber, Lyft and Via.

"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", the company said in a statement.

Uber has warned of increased wait times and raised fares as a result of the cap, but, as NY Times reports, many taxi and Uber drivers support the regulations, and hope that they'll lead to more passengers for each driver, and increased wages. Those wage concerns aren't limited to taxi drivers, though - in fact, the New York Times reports that almost 40 percent of the city's ride-hailing drivers qualify for Medicaid because their take-home wages are that low.

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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.

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.

New Yorkers who regularly rely on Uber, Lyft and other ride-hailing services to travel around the city's five boroughs may find the apps less convenient in the next year.

'Uber as you know it is going to be Uber as you know it, ' Cumbo said.

"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.

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