Market Overview

The Big Apple Freezes Ride-Hailing Registrations

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The Big Apple Freezes Ride-Hailing Registrations

For consumers, the innovation of ride-sharing services has arguably made travel better and more convenient. For existing taxi drivers and other ride-hailing drivers, that's far from the case.

What Happened

On Wednesday, New York City became the first major U.S. city to temporarily halt new vehicle registrations used for ride-hailing services. This marks the initial action to cap the growth of companies like Uber and Lyft.

The regulations are twofold. The halt will likely benefit existing ride-hailing drivers who struggle in the oversaturated market, while reducing the amount of cars should help ease traffic in one of the busiest cities in the U.S.

Why It’s Important

New York Mayor Bill de Blasio voiced his support for the move in a tweet Wednesday.

An Uber spokesman said the pause will threaten the reliable transportation the company offers, according to the Wall Street Journal. The New York City Taxi and Limousine Commission recently reported a whopping 80,000 ride-hailing vehicles in the city.

What’s Next

This 12-month halt will affect new licences for vehicles affiliated with ride-hailing companies. The TLC will use the time period to examine the habits and structure of the industry. Alterations could be made if the TLC determines a specific geographic area has particularly high demand.

Related Links:

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Photo courtesy of Uber. 

Posted-In: Lyft Uber Wall Street JournalGovernment Regulations Travel Media General Best of Benzinga

 

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