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NYC Approves Temporary Ban on New Licenses of For-Hire Vehicles

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taxi-in-big-city-delivery-vehicleThe 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 help increase the wage of taxi drivers.


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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.

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.


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News Sources: NPRThe Wall Street Journal, Mashable