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Why New York Officials Want to Pump the Brakes On Ride-Hailing Apps

| July 30, 2018


New York City officials are attempting to limit the number of vehicles driving for Uber and other ride-hailing services as part of an ongoing aggressive move to address mounting concerns that their explosive growth has increased congestion and decreased driver wages.

This legislation would make New York the first major American city to set a limit on ride-hailing vehicles, which in a relatively short period of time have completely transformed the transportation networks in cities across the world.

The proposal would halt the issuance of new for-hire vehicle licenses, except for vehicles that are wheelchair accessible, while the city conducts a yearlong study of the industry.

This marks the second attempt by New York City — Uber’s largest United States market — to cap the company’s vehicles after a failed effort in 2015.

Since then, the number of for-hire vehicles in the city has surged, rising to more than 100,000 vehicles, from about 63,000 in 2015, according to the city.

Elected officials have raised concerns about the once-thriving taxi industry and the increasing gridlock on city streets.

New York’s strong stance toward Uber comes at a time when other cities are grappling with how to respond to the challenges posed by the remarkable rise of ride-hail apps. Last month, Uber won back its license to operate in London after agreeing to stricter regulations.

A series of proposals before the City Council — would also move to set minimum pay rules for ride-hailing app drivers, a step that would make New York the first major American city to establish a pay minimum for drivers.

Category: Connected Fleet News, General Update, News

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