In win for taxi drivers, NYC halts new Uber, Lyft licenses for a year
NEW YORK – Uber, Lyft and other ride-hailing apps could soon become more expensive and harder to find in New York City.
The New York City Council on Wednesday afternoon agreed to impose a one-year freeze on new licenses for Uber and other ride-hailing vehicles while the city figures out a long-term solution to the rising number of drivers in the city using the apps. The measure is meant to better control traffic congestion.
The exceptions to the freeze are for wheelchair accessible vehicles and if the New York Taxi and Limousine Commission determines that granting new licenses in underserved areas would “not substantially contribute to
traffic congestion.”
The move is seen as a win for NYC taxi drivers who have complained that ride-hailing vehicle drivers are hurting their business. It also raises the possibility of additional regulation of ridehailing vehicles in other large cities as lawmakers grapple with the impact of Uber, Lyft and other companies on their transit networks. New York is the first city in the U.S. to impose such a cap.
The number of ride-hailing vehicles operating in the city has skyrocketed in recent years, from 12,600 in 2015 to about 80,000 this year, according to the New York City Taxi and Limousine Commission. Fewer than 14,000 yellow cabs operate in the city.
Another bill that was passed Wednesday established a minimum wage for drivers of ride-hailing services. The services have been criticized for not paying drivers enough.
A report provided to the Taxi and Limousine Commission last month proposed that for-hire vehicle drivers should earn $17.22 per hour, the equivalent of a $15 hourly wage when accounting for vehicle operating costs. The report found 85 percent of for-hire vehicle drivers currently make less than that.
Augustine Tang, 34, has been a yellow cab driver in New York City for two years. He lamented the lack of regulations on Uber.
“It’s been really tough to be in the city just because of congestion,” Tang said. “All these Uber cars are just roaming around trying to wait for the next person.”
Meanwhile, others supported the legislation to improve the quality of life for taxi drivers, who sometimes drive up to 14 hours a day. Five drivers have committed suicide in the first five months of the year, The New York Times reported in late May.