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NYC becomes first US city to impose Uber/Lyft cap

Uber

The New York City Council voted on Wednesday (8/8) in favor of a cap on the number of vehicles from Uber, Lyft, and other ride-sharing services on the road in NYC, CNBC reports. The new regulations, which restrict new licenses from being issued and stipulate a minimum wage for drivers, last for one year, and are the first of their kind to be imposed in a US city.

More from CNBC:

App-based ride services account for 80,000 vehicles in New York City, and provide 17 million rides per month, according to a study by The New School for the TLC. A surge in ridership has coincided with increased resident frustration with the local subway system.

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

“Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock,” New York Mayor Bill de Blasio said in a statement. “The unchecked growth of app-based for-hire vehicle companies has demanded action – and now we have it.”

But opponents say the regulations could result in longer wait times and higher prices for ride-hail services.

“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.

Uber has warned of increased wait times and raised fares as a result of the cap, but, as NY Times reports, many taxi and Uber drivers support the regulations, and hope that they’ll lead to more passengers for each driver, and increased wages.

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