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NYC Considers Cap on New Ride-Share Vehicle Licenses to Help Taxi Industry

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As ride-shares continue to surge in popularity, the public is starting to turn its attention to the struggling taxi industry. Ride-share services are wonderfully convenient. However, it’s a sobering reality that they have taken business away from conventional taxi services. To this end, New York City is currently considering placing a one-year cap on new ride-share vehicle licenses, in a desperate attempt to help out taxi drivers.

According to the New York City Taxi and Limousine Commission, app-based cars have increased by 12,600 since 2015, to the current total of 80,000. More than half of all for-hire vehicles on the road in NYC are Uber and Lyft vehicles. This has decreased the demand for taxis and other for-hire vehicles, which has contributed to the drop in wages. A study from the New York City Taxi and Limousine Commission  indicated that 85 percent of for-hire vehicle drivers earn less than $17.22 per hour.

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NYC intends the proposed one-year cap to function as a pause button on the decline in compensation for transportation drivers. A side bonus is that it will help reduce heavy traffic in the Big Apple. “Every driver needs a raise, and this package is the first step toward stopping the crisis of poverty,” said Taxi Workers Alliance (TWA) executive director Bhairavi Desai.

If New York City does approve the cap, it will be the first city to do so in the U.S. It’s a precedent that other cities and states might opt to follow, which in turn, would have an even stronger impact on the taxi industry.

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News Source: Bloomberg