Friday, 14 December, 2018

NYC becomes first United States city to impose Uber/Lyft cap

Uber and Lyft predicted to lose cap battle City Council vote on ride-share cap
Rhonda Young | 09 August, 2018, 02:33

The New York City Council voted Wednesday to set a cap on the number of ride-hailing vehicles in the city, a move that will see Uber and Lyft's growth curtailed.

The logo of Uber is pictured during the presentation of their new security measures in Mexico City, Mexico April 10, 2018.

The package, opposed by major ride-hailing companies, is aimed at reducing traffic congestion and increasing driver paychecks in the wake of the explosive growth of for-hire vehicles.

Supporters of a cap have said the regulations will protect drivers, fairly regulate the industry and reduce congestion.

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Mayor Bill de Blasio released the following statement, saying he is prepared to sign the bill into law: "Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock". Hundreds of cab owners couldn't earn enough to pay for their vehicle leases and taxi-license medallions, and economic desperation became a factor in at least six driver suicides since November.

Uber has campaigned against the legislation, warning riders that a cap on drivers will create higher prices and longer waits for cars.

Ride-hailing companies aren't exactly pleased. Picture taken September 21, 2017.

"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", Uber spokesperson Josh Gold told The New York Times in a statement.

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Backers of the proposals say both the traditional yellow cab industry and drivers for app-based services are suffering as Uber cars flood the city's streets.

Lawmakers who backed the measure cited congestion in the city and hoped that it would stop the decline in compensation for drivers, according to WABC in NY.

The New York City Council originally mulled a similar ban in 2015, but it stepped away from the issue before any legislation was approved. Occupancy rates will also be standardized for companies like Uber and Lyft, and the areas they can operate in will be limited.

Senator visits Russia for patch-up try
Trump has repeatedly said he wants to improve relations with Russian Federation , which are severely strained. The Kentucky Republican said it was agreed that a delegation of council members would visit the US capital.

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