Uber and Lyft are fighting a critical battle against New York City — and this time, they might not win

The New York City Council is preparing to approve a one-year cap on new licenses for ride-sharing firms — including Uber — as part of a series of regulations designed to decrease traffic and stop drivers' compensation from declining.

The regulations are set for a Wednesday vote; if approved, New York would be the first U.S. city to impose a bottom limit on drivers' compensation.

From Recode: "Uber and Lyft are fighting a critical battle against New York City — and this time, they might not win. At stake: A potential cap on the number of ride-hail cars in the city.

The proposed rules give the New York City Taxi and Limousine Commission the authority to regulate minimum wages for drivers and the number of cars allowed to drive for ride-hail companies, among other things. The bill also proposes a 12-month freeze on new ride-hail cars while the Commission conducts a study on how Uber, Lyft and their local competitors affect traffic congestion and livable wages.

Both Uber and Lyft have launched campaigns to fight parts of the bills. While the new-car freeze has taken center stage, it’s what happens after that has become a major cause for concern. Specifically, that the TLC — an agency with which both Uber and Lyft have had a sometimes contentious relationship — will have the wide-ranging authority to do things like impose a permanent cap on the number of ride-hail licenses and set a standard utilization rate for cars. But that depends on what the study finds."

New York City can set a precedent
While New York City has always been one of the most regulated markets for Uber and Lyft in the U.S., it’s Uber’s largest U.S. market …

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The New York City Council is preparing to approve a one-year cap on new licenses for ride-sharing firms — including Uber — as part of a series of regulations designed to decrease traffic and stop drivers' compensation from declining.

The regulations are set for a Wednesday vote; if approved, New York would be the first U.S. city to impose a bottom limit on drivers' compensation.

From Recode: "Uber and Lyft are fighting a critical battle against New York City — and this time, they might not win. At stake: A potential cap on the number of ride-hail cars in the city.

The proposed rules give the New York City Taxi and Limousine Commission the authority to regulate minimum wages for drivers and the number of cars allowed to drive for ride-hail companies, among other things. The bill also proposes a 12-month freeze on new ride-hail cars while the Commission conducts a study on how Uber, Lyft and their local competitors affect traffic congestion and livable wages.

Both Uber and Lyft have launched campaigns to fight parts of the bills. While the new-car freeze has taken center stage, it’s what happens after that has become a major cause for concern. Specifically, that the TLC — an agency with which both Uber and Lyft have had a sometimes contentious relationship — will have the wide-ranging authority to do things like impose a permanent cap on the number of ride-hail licenses and set a standard utilization rate for cars. But that depends on what the study finds."

New York City can set a precedent
While New York City has always been one of the most regulated markets for Uber and Lyft in the U.S., it’s Uber’s largest U.S. market by far. So any battle in New York City is a critical one for both companies. And as both Uber and Lyft plan to go public in the next two years, a 12-month pause on growth here could be particularly undesirable.

Even worse, this may set a precedent for other cities to impose a cap on Uber and Lyft vehicles in an attempt to regulate the companies’ growth.

More at: https://www.recode.net/2018/8/2/17635692/uber-lyft-new-york-city-regulation-bills-ride-share-car-cap

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