New York just capped the number of Uber, Lyft vehicles in the city
New York plans to cap ride hailing services, including Uber and lift becoming the first US city to take such a step. The New York City council voted Wednesday to freeze new vehicle licenses. Let's get the latest details joining us. Now in the podcast studio with more is Wall Street Journal reporter, Paul Berge welcome. Thank you for having me, of course. So hot off the press is New York City is the first city to do this. This comes after months of protests, obviously. So now this means what for Uber and lifted. Newark city basically means that for the next year, neither of the companies will be able to add any more vehicles onto the streets of Neo. The costs varieties could go up and the pushback from these firms is coming by way of what what are Uber and lift now saying, we'll basically in the last couple of weeks they've they've, they've reached out to ride as and basically warned them that if this legislation goes through as it as it now has done that, that will be fewer. 'cause. Servicing fewer people, which means that people in the outside bars in particular won't have as good service. The growth of Uber and lift comes at a time of rising congestions and city streets that I know that's one of the big issues spearheading this movement. How else did we get here as congestion? But it's also financial hardship amongst drivers throughout the the taxation vehicle industry to the question becomes is, does the set some kind of precedent. New York City is certainly unique city and you write about how it's also unique for Uber and lift in particular and their businesses. But what do you think this now means for other cities? I think what we've seen is across the country in the last few years, we've just seen a precipitous increase in the number of these vehicles on roads on. It's been a particular issue in major cities in New York. It's been felt mostly in Manhattan in of the citizens been downtown's or other areas out. I'm sure the cities will be looking at what's happening in New York and saying, you know, hey, we've got a problem, hit two is that our way that we can regulate it or the. The things that we can do would help. I, that's a decrease the number of vehicles on the riots all to try to stop those vehicles from being in certain places at certain times, which is what lates the congestion. And I have to ask, you know this, this news comes as Uber is an initial public offering. The second half of the year. How do you think this this news jolts that whole scenario the Donald be a lot of concern about the prospects for growth with this news, right? And immediately. I mean, right now it doesn't look very good for the company. I think the interesting thing to look at here is houses going to play out over the next year is Yuba gonna find a way of still growing. It's base of drivers of still actually increasing number of vehicles. You know what the city has done is it's basically frozen the number of vehicles that can be added to the streets, but there are already more than one hundred thousand of those vehicles on the streets, not all of them driving rubel. So if Uber can find a way of coopting some of the. Vehicles for itself. It could still continue growing.