NYC Approves Temporary Ban on New Licenses of For-Hire Vehicles
The New York City Council has officially passed legislation to temporarily halt new licenses of for-hire vehicles. This makes NYC the first city to pass legislation capping the growth of ride-hailing services.
Like with any legal decision, this one met with mixed reactions from NYC officials, local drivers, and ride share companies. New York City’s mayor expressed pride in the decision, stating that the ban will help relieve traffic while helping to increase the wage of taxi drivers.
Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock. The unchecked growth of app-based for-hire vehicle companies has demanded action – and now we have it.
— Mayor Bill de Blasio (@NYCMayor) August 8, 2018
I want to thank @NYCSpeakerCoJo and Council Member @StephenLevin33 for their leadership on this issue, and the entire @NYCCouncil for standing up for working people. I look forward to signing these bills into law.
— Mayor Bill de Blasio (@NYCMayor) August 8, 2018
Those on the opposing side of the argument voiced their disenchantment with the approved ban. Uber spokesperson Danielle Filson shared her skepticism of the legislation. “The city’s 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion.”
Not only did the New York City Council vote on the temporary new license cap yesterday; it also voted on a minimum wage driver pay plan. The city voted 5 to 1 to establish a higher hourly rate for drivers within a more “livable” range, according to Mashable contributor Sasha Lekach. Additionally, the New York Taxi Workers union expressed their praise of the decision.
NYC BECOMES FIRST CITY IN THE NATION TO REGULATE APP DISPATCH COMPANIES!!! This victory belongs to the yellow cab, green car, Uber, Lyft, black car and livery driver who united in our union to fight for justice! READ OUR STATEMENT https://t.co/UmhSuIcPJU
— NY Taxi Workers (@NYTWA) August 8, 2018
Only time will tell if the one-year cap will prove effective in curbing traffic. However, that and the minimum wage increase promise to level the playing field for struggling taxi drivers. The legislation will also ensure that all drivers receives a more reasonable minimum wage. It will be interesting to see if other major U.S. cities announce their own temporary bans on new licenses of for-hire vehicles. And whether or not they also raise the minimum hourly rate for paid drivers.
News Sources: NPR, The Wall Street Journal, Mashable
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