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NYC reins in Uber with cap on ride-hail vehicles

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The City Council is trying to undo the ridesharing revolution

Australian taxi drivers are calling for tighter regulations on the ride-sharing industry after a move by New York City to cap the number of Ubers.

Lawmakers on Wednesday approved a proposal to freeze new licenses for vehicle service drivers for one year, becoming the first large city in the U.S.to impose such restrictions.

Meanwhile, drivers for the app-based services have grown dramatically, increasing congestion in dense areas of Manhattan-according to the city council and other government bodies-without providing their drivers with a viable or consistent living wage, either.

"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. There are now more than 100,000 ride-hailing app vehicles from companies like Uber and Lyft on city streets.

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

Mayor Bill de Blasio, who has championed.

"Uber will do whatever it takes to keep up with growing demand and we will not stop working with city and state leaders, including Speaker Johnson, to pass real solutions like comprehensive congestion pricing", Uber said in a statement. But critics said it will make it harder, and more expensive, to get around.

It also gives the TLC the power to regulate minimum rates of fares, minimum pay for drivers and create a new rulebook for app companies.

The company said it would also reach out to vehicle owners with existing for-hire licenses and try to recruit them to work for Uber.

"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. London threatened not to renew Uber's license to operate in the city, but relented after Uber agreed to share anonymous trip data with city planners, limit its operating hours, and make other changes.

In emails to almost 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.

"Max" from RideShare Drivers United has also welcomed the move in NY.

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 relative lack of resistance-Uber and Lyft have spent a fraction of the amount on lobbying this year as they did three years ago and have not run attack ads on politicians who have received money from yellow-cab medallion holders-may owe to the council's decision to package the cap with other bills that the firms support.

"And you know that yellow don't pick up black". By passing the proposal, NY becomes the first city in the country to impose these limitations.

The move to tighten regulation in NY was in part prompted by several recent driver suicides.

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