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New York Places Cap On Ride Share Vehicles

New York Places Cap On Ride Share Vehicles

The New York City Council recently passed regulations of ride sharing companies Uber and Lyft, placing a cap on the number of vehicles on the road for a year and requiring the companies to pay their drivers a minimum wage. 

During this year period, the Taxi and Limousine Commission will study the effects of the modifications made in regard to both the drivers and overall congestion across the city. Currently, ride sharing drivers account for over 80,000 vehicles on the road at any given time in New York. 

Supporters are saying that the cap will force ride sharing service providers to fairly compensate their employees, reduce congestion on the roads, and give important information for future studies. Detractor are saying that it will increase the rates of ride share services, making it unfordable for riders and lowering the profitability of services for the company. 

"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. "We take [Council Speaker Corey Johnson] at his word that the pause is not intended to reduce service for New Yorkers and we trust that he will hold the TLC accountable, ensuring that no New Yorker is left stranded."

Lyft's Vice President of Public Policy Joseph Okpaku also stated: "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." We will never stop working to ensure New Yorkers have access to reliable and affordable transportation in every borough."

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Written By: Todd Hendrickson
Source: CNBC

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