New York City Puts a Halt to New Vehicle Licenses For Ride-Hailing Companies

NY temporarily halts registrations for ride hailing cars 1 photo
The force with which ride-hailing services the likes of Uber have hit cities across the world has sent authorities scrambling to find solutions to the problems that came with this new industry.
From the get-go, ride-hailing companies have been fought on the streets and in court in most countries by regular cab drivers, who see their way of making a living come under threat. Others faced the dilemma of how to tax Uber drivers and their kind.

And some have seen major cities swamped by ride-hailing cars and drivers, coming from all over the surrounding, lesser towns and cities to make a buck.

In an attempt meant to allow city officials to take a step back and look at the bigger picture before passing some piece of legislation to govern this industry, New York decided this week to stop issuing new licenses for ride-hailing companies for one year.

“We are pausing the issuance of new licenses in an industry that has been allowed to proliferate without any appropriate check or regulation,” Corey Johnson, the City Council speaker said according to The New York Times.

Supported by city mayor Bill de Blasio, the decision is likely to be singed into legislation soon and puts a first big dent in Uber’s plans for its biggest U.S. market. The second such dent would be the implementation of minimum rates of fares and minimum pay for drivers, currently being studied by the city.

Set up in 2009 as UberCab, the company that revolutionized transportation in major cities across the world did so by literally killing good-old fashioned cabs. Although the exact picture of the Uber aftermath is not yet clear, there are voices that have linked its rise with the increase in number of cab drivers committing suicide due to financial distress.

According to BBC, there are currently 80,000 ride-hailing cars from various companies operating in New York, far exceeding the 13,500 licensed yellow cabs.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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