New York puts cap on ride-hailing vehicles

By Ovunc Kutlu

NEW YORK

New York Mayor Bill de Blasio signed legislation Tuesday that halts the granting of new vehicle licenses to ride-sharing companies like Uber and Lyft for one year.

With the law, New York has become the first city in the U.S. to impose limitations on such companies.

"The City is sending a clear message: we’re putting hardworking New Yorkers ahead of corporations," de Blasio said in a statement.

"We are taking immediate action for the benefit of more than 100,000 hardworking New Yorkers who deserve a fair wage, and halting the flood of new cars grinding our streets to a halt," he added.

The New York City Council voted last week in favor of putting a cap on the number of vehicles that provide services through apps, hoping it would alleviate traffic congestion and help yellow cab drivers who have seen a decline in their incomes.

While there are approximately 14,000 yellow cabs in New York City, more than 80,000 people drive for ride-hailing services like Uber and Lyft.

Those who oppose the legislation argue that putting a cap on ride-hailing firms will hurt customers -- especially those outside Manhattan, where yellow cab companies provide less service.