Aug 8, 2018

NYC votes to cap ride-hailing cars and set minimum driver wage

Photo: Spencer Platt/Getty Images

The New York City Council voted on Wednesday to cap the number of ride-hailing cars in the city as part of a set of bills that will also set a minimum wage for drivers, and halt new licenses while it studies the impact of ride-hailing.

Why it matters: This is a blow to companies like Uber and Lyft, which have historically resisted such regulations. Mayor Bill de Blasio attempted to introduce a cap in 2015, but dropped the plan after pushback from ride-hailing companies.

The details:

  • Vehicle registrations for three main ride-hailing services (Uber, Lyft, and Via) will be paused for 12 months while the city studies the industry's impact. New drivers can still get new registrations via the Taxi & Limousine Commission.
  • The bills include some wiggle room for the companies. For example, the TLC will have the discretion to allow for more vehicles if there's a drop in availability in the city's outer boroughs. The companies are also allowed to add more wheelchair accessible vehicles to their services.
  • According to Lyft, its NYC drivers currently earn $24.14 per hour on average, before expenses, and about $16.42 per hour after expenses, which it says is close to the TLC's goal of $17.22 per hour.

Statement from Uber:

"The City’s 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion. We take the Speaker at his word that the pause is not intended to reduce service for New Yorkers and we trust that he will hold the TLC accountable, ensuring that no New Yorker is left stranded. In the meantime, Uber will do whatever it takes to keep up with growing demand and we will not stop working with city and state leaders, including Speaker Johnson, to pass real solutions like comprehensive congestion pricing."

From Lyft:

"These sweeping cuts to transportation will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs. We will never stop working to ensure New Yorkers have access to reliable and affordable transportation in every borough."

Go deeper

Cuomo says New York is "literally going day-to-day with our supplies"

New York Gov. Andrew Cuomo said in a press conference on Sunday that New York is struggling to maintain medical supplies while combatting the novel coronavirus — operating "literally" on a "day-to-day" basis.

Why it matters: New York City has become an epicenter of the coronavirus outbreak, facing mass quarantines and stay-at-home orders. Cuomo said Saturday that New York reported 630 new deaths in 24 hours — an "all-time increase" that beat the previous day's record of 562 deaths.

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 1,225,360 — Total deaths: 66,542 — Total recoveries: 252,615Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 312,249 — Total deaths: 8,503 — Total recoveries: 15,021Map.
  3. Public health latest: CDC launches national trackers and recommends face coverings in public. Federal government will cover costs of COVID-19 treatment for uninsured. Surgeon general says this week will be "our Pearl Harbor, our 9/11 moment."
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. "We're having the convention at the end of August." Biden says DNC may have to hold virtual convention.
  5. States updates: The Louisiana governor warned that his state is set to run out of ventilators in four days. Illinois governor claims Trump doesn't understand the word "federal."
  6. Oil latest: Monday meeting among oil-producing countries to discuss supply curbs is reportedly being delayed amid tensions between Saudi Arabia and Russia.
  7. Work update: Employees still going to work are often facing temperature checks, distanced work stations, protective devices and mass absences.
  8. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Illinois governor: "The president does not understand the word 'federal'"

Illinois Gov. J.B. Pritzker said on CNN's "State of the Union" Sunday that President Trump's comments about the federal government's stockpile of medical equipment suggest he "does not understand the word 'federal.'"

Why it matters: White House adviser Jared Kushner argued at a press briefing last week that the "notion of the federal stockpile was it’s supposed to be our stockpile; it’s not supposed to be state stockpiles that they then use."