Uber And Lyft Licenses Temporarily CAPPED In NYC — Do YOU Think This HELPS or HURTS NYC?

For those of you new to AutoSpies, I am like many folks who live in the New York Tri-State region. I live outside of Manhattan and I commute into town for work. It's not exactly easy given the public transportation system is in tatters and traffic is some of the worst in the country, but it is what defines the rat race that is New York.

And it might just get worse.

With the advent of apps such as Uber and Lyft, the traditional means of getting around have been disrupted. As one would expect, the city has decided to take action. Probably not in the way one would expect. Rather than properly invest in fixing the city's infrastructure or by getting creative with the taxi & limousine commission, it has decided to do something else.

Cap the issuance of new for-hire vehicle licenses for 12 months as it takes the time to study what's going on, exactly. In addition, another bill passed to initiate a $15/hour "living wage," for drivers.

This is as simple as supply/demand economics. Less drivers = higher prices. Not to mention a regulated $15/hour living wage will get passed along to riders to cover the cost.

As an Uber power user, I'm quite familiar with the application. You should see the surge pricing that takes the city by hold when demand is elevated — this is guaranteed not to get better now. And while the city may want to blame apps for congestion, what about all the new infrastructure changes, like installing plazas where main thoroughfares used to exist, installing parking where driving lanes used to exist and initiating permanent bus lanes on major cross streets where the third and fourth lanes used to exist?

So, Spies, I've got to ask: Do YOU think a temporary cap will HELP or HURT NYC?

Reports seem to indicate that the success/failure of this move may create a ripple effect across the country.

The New York City Council voted on Wednesday in favor of a cap on the number of for-hire delivery and transportation vehicles on the city’s streets, striking a stunning blow to tech companies like Uber and Lyft.

The council voted to halt the issuance of new for-hire vehicle licenses for 12 months while it studies the booming industry. Under the cap, Uber and Lyft could still be granted licenses for wheelchair-accessible vehicles — which both companies sorely lack — but would be prevented from adding new ride-hail vehicles for one year. The city’s Taxi and Limousine Commission could also issue licenses in particular neighborhoods that are running low on ride-hail vehicles. Another bill that passed would establish a $15 living wage for drivers. The bills now go to the desk of Mayor Bill de Blasio, who has indicated his support for a cap...

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SanJoseDriver - 8/9/2018 1:55:08 AM

+2 Boost

Hurt. Less competition = higher prices and fewer options.

TomM - 8/9/2018 7:51:43 AM

+2 Boost

Actually - the problem is not that simple.

For decades - there were only two ways to get a cab
1 - You could call a car service - they were always available but generally these cars were older - in bad condition - and the drivers were not knowledgeable of places beyond the tourist traps. Most of the cars were retired Police Vehicles.

2 - The only CAB you could HAIL at the street was a Licenced YELLOW CAB - and the medallions were limited - they were VERY expensive (SOme some for hundreds of thousands of dollars) - but the fares were set by the city. THese cars were new or newer - had a limited life before retirement - and were specified and approved by the city as cabs. Often -= the city only had one or two approved cars for that purpose. THey had to be painted Yellow - and NO OTHER cabs could be yellow.

Both licenses required that the cars have commercial Insurance - and they did have to pass occasional inspection. There is also a special CAB drivers license as well.

Now - with Uber - the use of Yellow cabs is dwindling - many cab drivers are losing their shirts - but they still must operate under the regulations. While Uber drivers can have ANY car they want - often do not have commercial insurance and are driving without insurance that would apply (Commercial use is NOT covered by Personal insurance) - they do not have cab licenses - and while it does provide a cheaper way in some cases - you do not get the protections of a licensed cab.

THe insurance problem is a particular concern - since drivers are often unaware that their personal insurance does NOT cover them until they are SUED and several have lost their Houses in civil lawsuits already.

The question is - should all for hire vehicles fall under the SAME regulation that only licensed vehicles currently do? At least in the case of insurance I believe they should - and I will not enter an UBER unless they have commercial insurance - I ask. Most do not even know what you are talking about.

mre30 - 8/9/2018 3:17:37 PM

0 Boost

I live in NYC and I can say that it will help - there are too many Ubers (just ask the drivers next time you take an Uber in NYC).

Uber (and Lyft to a lesser extent) basically subsidize the service in NYC to drive out other forms of business (i.e. yellow taxi cabs that are government regulated). Taking an Uber is cheaper than taking a yellow cab. Uber g$1,000 signing bonuses or the equivalent in 'guaranteed fares' to "buy" market share.

NYC uber drivers are poorly trained and many are from out of the area, so between their sheer numbers and not being familiar with the layout of NYC (most of them could not find the destinations without the waze-based routing software) - the end result is that all the Ubers take the same computer-generated routes which has definitely made traffic worse in NYC over the past three years.

I am not "pro-regulation" but this is a necessary step.