![New York Caps New Ride-Share Licenses, May Establish Minimum Wage for Drivers](https://web.archive.org./web/20180906121807im_/https://www.cebglobal.com/talentdaily/files/2018/08/uber-driver-nyc-800x533_c.jpg)
New York Caps New Ride-Share Licenses, May Establish Minimum Wage for Drivers
![New York Caps New Ride-Share Licenses, May Establish Minimum Wage for Drivers](https://web.archive.org./web/20180906121807im_/https://www.cebglobal.com/talentdaily/files/2018/08/uber-driver-nyc-800x533_c.jpg)
The New York City Council passed legislation on Wednesday to put a one-year cap on for-hire vehicle licenses and to empower the city government to set a minimum wage for ridesharing drivers, in a crackdown on the largely unregulated growth of platforms like Uber and Lyft, the New York Times reported:
The proposal to cap ride-hail companies led to a clash among interest groups with taxi industry officials saying the companies were dooming their business and Uber mounting a major advertising campaign to make the case that yellow cabs have a history of discriminating against people of color.
Mayor Bill de Blasio and Corey Johnson, the City Council speaker, said the bills will curtail the worsening traffic on the streets and improve low driver wages. … But Uber has warned its riders that the cap could produce higher prices and longer wait times for passengers if the company cannot keep up with the growing demand.
New York is the largest market for Uber in the US, but already regulated ridesharing more stringently than many other American cities. To address concerns about unfair competition from the local taxi industry, New York requires drivers to obtain special licenses from the city’s Taxi and Limousine Commission, along with commercial liability insurance and special plates for their vehicles, which must meet certain eligibility criteria.
The new will not affect Uber and Lyft drivers who are already licensed to operate in the city, but will pause the issuing of new licenses immediately while the city studies the effects of the rise of ridesharing on traffic, driver wages, and the local economy.