The New York City Council on Wednesday agreed to cap the number of licenses for ride-hailing services such as Uber Technologies Inc for one year, dealing a blow to the companies that have relied on the largest U.S. metro area for a major source of their revenue.
The first such cap by any major U.S. city was part of a package of measures that also includes setting a minimum wage for drivers.
The package, opposed by major ride-hailing companies, is aimed at reducing traffic congestion and increasing driver paychecks in the wake of the explosive growth of for-hire vehicles. The drop-in incomes have demoralized many drivers and the New York Taxi Workers Alliance said there have been six suicides among cab and livery drivers in recent months.
The number of ride-hailing vehicles operating in the city has jumped from about 12,600 in 2015 to about 80,000 this year, according to the New York City Taxi and Limousine Commission. About 14,000 yellow cabs operate in the city.
The effort to cap the services in New York, Uber’s largest U.S. market, was opposed by ride-hailing businesses, including Uber, Lyft and Via.