Uber and Lyft Face Challenge in NYC
If you were considering driving for Uber or Lyft in the Big Apple, think again.
On Thursday, August 9th, the New York City Council passed legislation halting the issue of any new licenses to drive for the ride service companies for 12 months. The city hopes to use this hiatus to study traffic patterns and the effects of ride-sharing on New York City traffic.
New York becomes first major U.S. city to issue temporary cap on Uber, Lyft and other ride-share drivers. https://t.co/eH5eckxtxW
— The Associated Press (@AP) August 8, 2018
However noble NYC Mayor Bill de Blasio’s intention with this bill seems, it may cause headaches for drivers, riders, and ride-sharing companies alike.
In all of NYC there are nearly 13,500 licensed taxi cabs in operation in comparison to more than 80,000 licensed Uber and Lyft drivers. There is no question that the demand for these services is growing in recollection of 2015–when that number was only at 25,000.
JUST IN: NYC creates cap on Uber and Lyft vehicles, minimum wage for drivers https://t.co/whfDp4djr6 pic.twitter.com/ompoUiSmGU
— The Hill (@thehill) August 8, 2018
An average of 1,700 ride-sharing vehicles enter the New York City streets each month, putting taxi services in a bind and forcing the price of taxi medallions (required for yellow taxis to drive) down from $1 million to only $200,000 in a matter of years.
What do you think about NYC’s move to halt the growth of ride-sharing in America’s largest city? Would you rather sit on the subway for 65 streets, or in the comfort of an air-conditioned car to yourself?
However you feel, you can be sure that the ride-sharing companies you love will be fighting back. Uber released a statement in swift response to the legislative move Thursday saying the company, “will do whatever it takes to keep up with growing demand.”
