NYC may limit the number of Uber and Lyft vehicles allowed to operate in the city

Polycount

TS Evangelist
Staff member

Uber has had quite a few issues lately. Over the past couple of years, the company has faced down numerous lawsuits, federal investigations, and fatal self-driving car crashes.

However, the latest problem the company will be forced to contend with could be one of its most significant hurdles yet. As reported by the New York Times, New York City officials are considering proposals that would implement a cap on the number of ridesharing vehicles that can be in operation on its streets at any given time.

The city's fears stem from the belief that Uber and Lyft's growth will prove to be unsustainable, or even dangerous, in the long-term. As of writing, there are over 100,000 Uber vehicles on NYC's streets, a number that could be leading to low driver wages, high levels of traffic congestion, and poor working conditions.

Indeed, Uber recently placed a limit on the number of hours its drivers in the US and the UK could work in one stretch, as some were beginning to fall asleep at the wheel.

"This is the plan that we came up with and in my heart I believe it’s the best path forward," New York City Council speaker Corey Johnson said in a statement. "Our goal has always been to protect drivers, bring fairness to the industry and reduce congestion."

In addition to the possible implementation of a vehicle cap for companies like Uber and Lyft, NYC officials are also considering a proposal that would institute a minimum wage for the apps' drivers.

Uber appears to have responded to this news by publishing a video titled "Don't Strand NYC" to a mysterious "Uber 2018" YouTube channel. In the short, 30-second clip, a grim voiceover suggests the many positive benefits Uber has brought to NYC residents could "disappear" if the City Council "gets its way."

Regardless of Uber's objections, one thing's certain: The ridesharing industry continues to grow at an alarming rate, and city officials across the US will be forced to act sooner or later.

Permalink to story.

 

GeforcerFX

TS Evangelist
In NYC congestion would be a very valid concern, in a city like that you would prefer people take mass transit and not individual vehicles.
 

kapital98

TS Guru
This doesn't seem like well targeted legislation.

It would help 'contractors' of uber who are having their wages depressed by the low barrier to entry for uber drivers. Though this could be handled much more efficiently by having NY claim uber drivers are employees -- like what CA did. Or by putting in place greater restrictions on the qualifications necessary to be an uber driver. Essentially, make Uber have the same standards as taxis.

The legislation is putting a restriction on one of the most fluid and responsive industries around. Due to Uber drivers being contractors, they can quickly quit or change hours with very few consequences. It just doesn't make sense to use a ceiling for the number of drivers.

There are better ways to achieve this: Do what London did and provide a prohibitively high tax for driving; invest more in public transit; decrease regulation on taxis; or, do nothing and be happy Uber prevents more people from buying cars and all the headaches that come with that.
 

treetops

TS Evangelist
"Regardless of Uber's objections, one thing's certain: The ridesharing industry continues to grow at an alarming rate, and city officials across the US will be forced to act sooner or later."

Alarming rate huh? Looks like a propaganda piece.