New York simply turned the primary US metropolis to cap the variety of ride-sharing automobiles and require Uber, Lyft, and different corporations to pay drivers a minimal fee.
Regulatory adjustments in New York Metropolis, Uber’s largest US market, might present a mannequin for different cities desperate to rein in ridesharing companies which have elevated congestion at the same time as they’ve revolutionized transportation.
The package deal of payments authorised Wednesday by the New York Metropolis Council requires, amongst different issues, a one-year freeze on new for-hire automobile licenses as town explores methods of decreasing visitors congestion. It additionally ensures that rideshare drivers earn no less than $17.22 per hour.
Supporters of the legislation, together with Mayor Invoice de Blasio, stated it is going to ease gridlock and enhance wages. However critics stated it is going to make it tougher, and dearer, to get round.
“These sweeping cuts to transportation will deliver New Yorkers again to an period of struggling to get a trip, notably for communities of shade and within the outer boroughs,” Joseph Okpaku, Lyft’s vp of public coverage, stated in an announcement. “We are going to by no means cease working to make sure New Yorkers have entry to dependable and inexpensive transportation in each borough.”
The cap doesn’t apply to wheelchair accessible automobiles or underserved areas that haven’t been affected by congestion. Metropolis officers plan to make use of the time to check laws and requirements for the ride-hailing business.
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This comes within the wake of stories that the rise of ridesharing providers has depressed the worth of taxi medallions and sharply lower into driver earnings. The scenario has grown so dire that no less than six taxi drivers dedicated suicide within the first half of 2018.
About 80,000 drivers within the metropolis are affiliated with 4 ridehailing corporations — Juno, Lyft, Uber and By way of — in line with a current report commissioned by the Taxi and Limousine Fee and carried out by The New College’s Middle for New York Metropolis Affairs. That is up from 12,600 in 2015. There are about 14,000 taxi drivers within the metropolis.
“Our metropolis is instantly confronting a disaster that’s driving working New Yorkers into poverty and our streets into gridlock,” the mayor stated in a tweet. “The unchecked progress of app-based for-hire automobile corporations has demanded motion -— and now now we have it.”
Many Uber drivers joined the taxi business in supporting the proposal.
“Employees and New York leaders made historical past right this moment. It isn’t simple taking over Silicon Valley behemoths, however we stored on preventing for what we all know is correct and right this moment the employees prevailed,” stated Ryan Value, the chief director of the Unbiased Driver’s Guild. The group represents greater than 65,000 app-based drivers.
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New York’s transfer might form laws being thought-about in different cities involved by the rise of ridesharing providers. Uber specifically has clashed with authorities in Austin, Texas, and in cities all through Europe. London threatened to not renew Uber’s license to function within the metropolis, however relented after Uber agreed to share nameless journey information with metropolis planners, restrict its working hours, and make different adjustments.
Uber is already planning strikes to sidestep New York’s cap, which applies to automobile licenses, not drivers. With that in thoughts, Uber stated it is going to ask present drivers to share their automobiles with new drivers. And it hopes to poach drivers from competing providers, increasing its presence within the metropolis.
CNNMoney (New York) First revealed August eight, 2018: 5:59 PM ET