Officials in New York City will make an action to restrict the number of ridesharing vehicles such as Uber and Lyft in the city.
The move's goal is to contain the increasing growth in the for-hire vehicle industry, which has been blamed for the rising congestion in the street, and low wages for the city's drivers. The legislation being considered by the City Council of New York would make the place one of the first cities to limit the number of ride-hail vehicles on its roads.
Cap On Uber And Lyft
Furthermore, Manhattan Democrat and Council Speaker Corey Johnson said that he supports the measure. Meanwhile, Mayor Bill de Blasio has shown his support for the new rules for the companies.
New York City mayor has suggested his own attempt to restrict the Lyft and Uber vehicles in the area in 2015. However, the proposal was dropped after the battle with the startup companies.
The council would vote on the measures on Aug. 8. There are also bills that are under consideration. One of those bills would freeze the new vehicles of the ridesharing companies for 12 months while the Taxi and Limousine Commission of the city studies the congestion, utilization, neighborhood service, and driver income.
Another bill would make a new category and licensing framework for Uber and Lyft, in which the authorities could limit the permits by geography and potentially deny to renew a permit if its need is not apparent.
Statement Of Lyft And Uber
Lyft and Uber are taking the restriction as an attack on the residents of outer-borough, especially the minorities whose access to public transit are limited. In fact, they are often passed over by the yellow taxis. The two company's complaint is closely similar to the one it presented three years ago.
Adrian Durbin, Lyft Communications Director said that to put the blame solely on ridesharing companies misses the point. He added that there are many studies that show ridesharing is not the reason of the increased congestion.
According to a spokesman from Uber, the cap will leave many New Yorkers stranded while doing nothing to aid the congestion, fix its subways, and help the taxi medallion owners who are struggling.
The spokesman added that the restriction will impact the people outside Manhattan who have grown to rely on Uber because the communities where they belong to have been ignored by cabs and they do not have access to public transit.
On July 26, when officials started discussing the proposal, Uber released an ad that shows available vehicles disappearing from its app as a result of the restriction.