The New York city council has decided to place a temporary cap on issuing new ride-hailing service licenses in the city. The new legislation will be effective for a year. In addition to this, the city will also be able to set a minimum wage for drivers that use apps to find fares.
The council claims that both yellow cabs and ride-hailing drivers in the city are suffering because of the amount of new Uber cars on the streets, in addition to the influx causing further problems with congestion.
An Uber spokesperson quoted by The Guardian said the new licenses:
“Threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion”
Between 2015 and now, it’s claimed the number of for-hire cars in New York has increased to more than 100,000. It’s Uber’s largest market in the United States and at the end of 2017, ride-hailing services in the city took 65% more passengers on a monthly basis than regular taxi cabs. In Manhattan at the end of 2017, ride-hailing cabs were ready to pass traditional taxis in pickups.