New York Becomes First City to Cap Ride Sharing Services

The regulators of New York City decided to add a cap to how many operational licenses that Lyft and Uber could have. Regulators made this decision in an effort to keep the yellow cab system in New York City alive. It’s the latest in an ugly conflict between regulators and ridesharing companies in several of the metropolitan areas across the nation.

Threatening the Taxi Business

For a long time, taxis have fought ferociously against Uber and Lyft because of how it threatens their business. They lose customers to the ridesharing apps, which has resulted in ongoing controversy worldwide. In some cases, even physical altercations have arisen as drivers have battled to receive a share of the fares. Worried taxi drivers have committed suicide because of the financial strain that Uber and Lyft has put on them.

Leveling the Playing Field

In an effort to level the playing field, the New York City Council made a decision to put a cap on how many licenses Uber and Lyft can issue per year. This comes as the first crushing blow against the company because this company ultimately relied on this metropolitan city as a huge source of revenue. Uber and Lyft may not even have seen the last of it as New York has only been the first major city to decide on such a cap. However, more could follow in the direction New York has chosen.

What Uber Had to Say

The decision the city has made to pause these licenses could threaten one of the only reliable transportation methods around. The city chooses to do nothing to fix its subways or to ease the highway congestion, which only adds to the problem. It brings New Yorkers back to an era where you had to struggle to find a ride. In particular, the outer boroughs and the people of color had the hardest time.

The decision by the New York City Council hasn’t been met without its share of controversy. While the ridesharing companies have been angered, the city continues to push forward with its decision because it helps a floundering taxi industry. Because of this decision, it could potentially raise the driver rates for taxis and ridesharing companies. The decision has helped the morale of the taxicab drivers.