The "City That Never Sleeps" has always been a huge market for ride-hailing services. Uber or Lyft, depending on whichever riders prefer, considers it a "lion's share" of their services. However, that will change since a bill was passed regulating these ride-hailing services.
Democrat Mayor Bill de Blasio signed the said bill, which places a year-long cap on new registrations and licenses for the ride-sharing apps. Vehicles that were modified for disabled persons, however, were exempted from the bills. ABC News says that this was among a series of bills that were signed by the mayor, but so far, it has turned out to be the most controversial.
Mayor de Blasio explained his decision, calling it "fair" and that he did it for the other "hardworking New Yorkers." NYC is a prime hub for the traditional yellow cab, which is currently feeling the pressure as more and more ride-hailing cars take to the streets. An additionally growing problem is the proliferation of new cars plying the streets of the city, adding to the traffic and worsening congestion.
These laws, Wall Street Journal explains, orders the city's Taxi & Limousine Commission to halt issuing 'for-hire' licenses for a year. Pending the investigation of traffic conditions as well as regulation on the issuance of new licenses, the registration of new ride-hailing vehicles will temporarily be banned.
The law, however, also covers current for-hire drivers and their basic needs by raising the take-home pay of these current drivers by $6,000. According to the new law, a minimum payment of $17.22 an hour will be issued per driver. This is to protect them from situations where no one rides them; in case the drivers don't meet their minimum quota, the app companies will make up the remaining difference.
The growth of app-based ride-hailing services in the city has lowered the wages for every driver in the city-taxi, black-car, or livery. The law aims to cover the expenses these drivers incur, given that the abundance of rides has lowered the minimum wage to $13 in a per-hour shift.
Those opposing the laws, however, bit back and said that the legislation helps commuters who live outside of the traditional routes plied by yellow-cab taxis. They also cited racial bias, saying that taxi drivers don't often give rides to Hispanic and black New Yorkers.
