Uber, Lyft dealt a major blow after New York City votes to cap vehicle licenses

By Seung Lee | [email protected] | Bay Area News Group August 8, 2018 at 3:59 pm Uber, Lyft and other ride-hailing services were dealt a major regulatory blow on Wednesday after the New York City Council voted to cap the number of new licenses for one year in an attempt to reduce traffic congestion and increase driver compensation. New York City’s vote to cap ride-hailing vehicle licenses is the first of its kind in the United States. Despite lobbying efforts by Uber and Lyft that cost them millions of dollars, the 39-6 vote by the council is an attempt to slow down the explosive growth of drivers on its streets and to protect yellow cab drivers in the city who reportedly have seen an increase in bankruptcies and suicides in the past few years. “Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock,” tweeted New York City Mayor Bill de Blasio after the vote. “The unchecked growth of app-based for-hire vehicle companies has demanded action — and now we have it.” In statements to CNBC, Uber said the cap will “do nothing to … ease congestion,” and Lyft said it will “bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs.” Neither company said whether they would fight the new regulation. No city in the Bay Area has proposed a similar move to cap ride-hailing licenses for… [Read full story]