The Mayor of New York, de Blazo has taken steps to freeze new licenses for one year on all ride-hail services and for drivers to be paid minimum wages.
The New York City Council has put a cap on the number of vehicles that can be on the road for a year. Drivers are to be paid minimum wages.
Ride services that are app-based in the city of New York are surging. Per month, they provide around 17 million rides, while the number of vehicles is around 80,000.
Residents are facing many congestion problems with the transport system. There are many supporters for the cap while some oppose it.
Many who support the cap are happy with the cap introduced to regulate drivers and to protect the industry. This will indeed reduce congestion they feel.
The cap will not be required for new wheel-chair access vehicles. Vehicles that do not increase congestion will also not be included.
The cap will definitely be on ride services that are app-based such as Lyft and Uber.
The Mayor of New York, Bill de Blasio says, “Hire vehicles that are app-based are growing unchecked and action has to be taken to protect the common man and reduce congestions”.
However, those who oppose the cap say “this will increase wait times and increase prices for app ride-hail vehicles.
Uber states “Uber has been providing reliable transport and this will threaten our services”. Further, it also says “no action is taken to ease congestion or to improve subways, while a cap on app-based hire vehicles is the first step taken”.
Joseph Okpaku, Vice-President of Lyft’s public policy, says that this cap will harm the yellow cabs which are serving the community. He also states that they will hamper transport, especially in the outer surroundings and bring in color discrimination while taking a ride.
“Our services are reliable and affordable”, he says.