(Reuters) – The New York Town Council on Wednesday agreed to cap the amount of licenses for experience-hailing services these types of as Uber for a single 12 months, working a blow to the providers that have relied on the greatest U.S. metro location for a big source of their revenue.
The symbol of Uber is pictured all through the presentation of their new stability measures in Mexico Town, Mexico April 10, 2018. REUTERS/Ginnette Riquelme
The Town Council evaluate was aimed at decreasing targeted traffic congestion and rising driver paychecks in the wake of the explosive advancement of for-seek the services of vehicles and a rash of suicides among New York’s “Yellow Cab” motorists who have found their incomes slide.
The amount of experience-hailing vehicles working in the city has jumped from about 12,600 in 2015 to about 80,000 this 12 months, in accordance to the New York Town Taxi and Limousine Fee. About 14,000 yellow cabs work in the city.
The work to cap the services in New York, Uber’s greatest U.S. industry, was opposed by experience-hailing corporations, including Uber, Lyft and Via.
In e-mails to nearly 5 million New Yorkers last month, Uber mentioned riders would be harm most by the limit on figures, and would facial area higher rates, for a longer time wait moments, and a lot less services in the city’s outer suburbs by motorists.
Reporting by Jon Herskovitz, editingby Monthly bill Tarrant