The New York City Council has just approved regulations on ride sharing companies such as Lyft and Uber. The approval, which was made on Wednesday, caps the number of vehicles that can be on the road. The cap is for one year and also requires drivers for the services to be paid a minimum wage.
The Taxi and Limousine Commission will study the effects that ride sharing companies such as Uber and Lyft have in the city. The study will take place during the one year cap that was approved earlier today.
The one year cap will not apply to wheelchair-accessible vehicles and services looking to show that they help that area. Uber and Lyft are extremely popular in the city but experts believe the cap could increase prices.
Ride sharing companies account for 80,000 vehicles in New York City. A study from the Taxi and Limousine Commission says ride sharing services provide 17 million rides per month. The services provide a quick way of transportation around the city.
In the past, studies have revealed that ride sharing companies have become popular in the area over several reasons. One of the big reasons is said to be because of the frustration from the population over the subway system.
Uber and Lyft have already responded to the one year cap approved just hours ago. Uber said in a statement that the 12-month pause will threaten one of the few reliable transport options while doing nothing to solve the subway issues.
Joseph Okpaku, Lyft’s Vice President of Government Relations, said in a statement that the cuts to transportation will bring residents back to an era of struggling to get a ride. Mr. Okpaku finished his statement by saying that the company will never stop working to ensure residents have access to reliable and affordable transportation.
It is not the first time that a cap or other regulation is approved against ride sharing services such as Uber and Lyft. Uber has had a difficult time in the past in countries such as Brazil and France. In September last year, Transport for London decided not to renew Uber’s license to operate in the city. The ride sharing company launched an appeal shortly after. In late June, the ride sharing service won its appeal to continue operating in the city. The appeal itself had given the company time to continue operating as it waited for a decision.