Published: Thu, August 09, 2018
Markets | By Erika Turner

New York City has hit Uber with a cap on new cars

New York City has hit Uber with a cap on new cars

New York City is reining in the growth of Uber, Lyft and other app-based ride services with a temporary cap on new cars picking up fares.

The logo of Uber is pictured during the presentation of their new security measures in Mexico City, Mexico April 10, 2018. The insider was unsure of the exact nature of these last-minute amendments, but another source suggested that a final draft of the bill might allow now licensed Uber and Lyft cars to be rented to other drivers, possibly creating yellow-taxi-style fleets of ride-hail cars.

The City Council approved a package of bills that included a one-year moratorium on new licenses for for-hire vehicles while the city studies the rapidly changing industry.

Other bills set a minimum wage for drivers for Uber and other services, and aim to impose regulatory parity with yellow cabs.

Uber has blazed the trail for the ride-hailing industry by ignoring local regulations, clashing repeatedly with city governments and often threatening to shut down service in response to legislation.

Six drivers have killed themselves in the past year, including one who shot himself in his auto in front of City Hall after railing against politicians and Uber in a newsletter column.

About 80,000 vehicles are now used for so-called "ride sharing", in which drivers get a hail through an app.

The exceptions include applications already submitted, wheelchair-accessible vehicles, cars in the area that would not contribute to congestion, and license renewals.

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In June, a British judge overturned the earlier decision and granted the ride-hailing app a 15-month permit. Picture taken September 21, 2017.

Many Uber drivers joined the taxi industry in supporting the proposal.

The New York City Council voted Wednesday to freeze new vehicle licenses for one year while the city studies ways of reducing traffic congestion, among other steps. The study recommended a $17.22 hourly minimum wage after expenses, arguing the measure would cover the costs of owning and driving a auto in the city and allow for paid time off. City officials would set the wage.

"No one is going to be destroyed by what happened today", Bhairavi Desai, the executive director of the New York Taxi Workers Alliance, said after the vote.

"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", Okpaku's statement reads.

Last month Uber's CEO and Lyft's president both addressed the traffic congestion complaints at a technology conference in Aspen, Colorado.

Gold said the outstanding 40,000 licenses belong to black auto and livery drivers, workers Uber will aim to recruit. Uber and Lyft support congestion-based road pricing in part because it targets all private vehicles, rather than singling out ride-sharing. It has also pledged to make half of its trips carpools, with multiple passengers by 2020.

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