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

New York City caps Uber and Lyft vehicles — a first-in-the-nation move

Cars in Manhattan including a yellow taxi make their way around a ride-hailing vehicle picking up passengers

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 New York City Council on Wednesday passed a cap on the number of ride-hailing vehicles allowed to operate in the city, in a major blow to companies like Uber and Lyft. 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.

New York City is the first major USA market to place a cap on Uber and similar services, which could inspire other cities to adopt legislation as they grapple with the effects of ride-hailing services.

Mayor Bill de Blasio said he plans to sign the bills into law.

Wall Street Journal editorial page writer Jillian Melchior and GOP communications strategist Lee Carter on how New York's city council may approve a one-year cap on new licenses for Uber and other ride-sharing vehicles. The hits to the taxi industry reportedly contributed to the deaths of multiple drivers in past months. Almost one in five qualify for food stamps.

FILE PHOTO: An illuminated sign appears in a Lyft ride-hailing vehicle in Los Angeles, California, U.S. September 21, 2017.

Lyft vice president of public policy Joseph Okpaku panned the vote in a statement, saying that the measure "will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs".

"We will never stop working to ensure New Yorkers have access to reliable and affordable transportation in every borough", he said. Several members of the committee did not respond to a request for comment.

"New York City is the first city in the country enact drivers' demands into legislation", it said on its website. Since then, the number of ride-hailing vehicles on NY roads has more than tripled, according to The Wall Street Journal.

Ride-hailng apps such as Uber, Lyft and Via had vocally opposed the measure, arguing it would hurt city residents where fewer taxis and public transportation options are available. That wouldn't bode well for Uber, which is considering going public next year.

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