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The
first such cap by any major U.S. city was part of a package of
measures that also includes setting a minimum wage for drivers.
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. 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 Mayor Bill de Blasio said he intended to sign the bills
into law, which would start the 12-month period where no new
for-hire vehicle licenses would be issued, with an exception for
wheelchair-accessible vehicles.
"This action will stop the influx of cars contributing to the
congestion grinding our streets to a halt," he said in a
statement.
The number of ride-hailing vehicles operating in the city has
jumped from about 12,600 in 2015 to about 80,000 this year,
according to the New York City Taxi and Limousine Commission.
About 14,000 yellow cabs operate in the city.
The effort to cap the services in New York, Uber's largest U.S.
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," Uber said in a
statement.
Lyft 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."
Via, which operates shared rides with established stops, hopes
the city will make an exception for carpools, which it says
reduce congestion and provide drivers with the most money.
In emails to nearly 5 million New Yorkers last month, Uber said
riders would face higher prices, longer wait times and less
service in the city's outer suburbs by drivers.
The New York Taxi Workers Alliance, an 18,000-member union
representing the city's taxi drivers, hailed the council's vote
as a victory.
"New York City is the first city in the country enact drivers'
demands into legislation," it said on its website.
Last month Uber’s CEO and Lyft’s president both addressed the
traffic congestion complaints at a technology conference in
Aspen, Colorado.
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. Lyft has acquired the
Motivate bike-sharing company. It has also pledged to make half
of its trips carpools, with multiple passengers by 2020.
(Reporting by Jon Herskovitz in Austin, Texas and Heather
Somerville in San Francisco; Editing by Bill Rigby and Lisa
Shumaker)
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