No new licenses for ride sharing vehicles will be issued for the next year in New York City as officials study the impact of companies like Uber and Lyft on traffic and the city’s taxi industry, the New York Times reports.
The bill passed by the City Council to set a moratorium on new licenses also calls for establishing minimum payment standards for ride-share drivers. The latter is a first for US cities.
“We are pausing the issuance of new licenses in an industry that has been allowed to proliferate without any appropriate check or regulation,” said City Council President Corey Johnson.
New York Mayor Bill de Blasio added: “More than 100,000 workers and their families will see an immediate benefit from this legislation, and this action will stop the influx of cars contributing to the congestion grinding our streets to a halt.”
Uber lobbied strongly against the bill and warned riders of higher prices and longer wait times that could result from 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,” said Uber spokesperson Josh Gold.
New York joined a growing list of cities in the US and internationally that have sought to rein in ride-sharing operations, including Seattle, Austin, and London.
