• NYC has agreed to extend its cap on Uber and Lyft.
• The cut down has been made in order to study the impact of the ride-sharing industry.

New York City has reportedly announced its continuation on limiting the number of ride-sharing vehicles like Uber and Lyft moving without the passengers with an aim to study the impact of ride-sharing industry in the city.

It has been claimed that the cap has been extended for almost another 12 months.

As per credible sources, the NYC Taxi & Limousine Commission universally voted on the extension and forming a new rule around moving around the city, limiting the ride hail time of the drivers who loiter around the streets without customers during peak hours. The idea is to cut down on under-use of drivers and ease the traffic.

According to industry analysts, the hire-drivers spend over 40 per cent of their total work time driving down the streets waiting for the passengers. Under the new rule, which is expected to come into effect immediately, the ride-sharing vehicle companies will have to cut down the time to 36 per cent or below when driving during core weekday and weekend hours by February 2020. Also, by August 2020, the time needs to be further scraped down to 31 per cent or below.

It has been claimed that the monitoring changes in NYC could prove to be a classic example for other cities eager to lead in ride hailing companies that have increased traffic even with revolutionized transportation.

As per sources with the knowledge of the matter, Uber has reportedly raised an objection against the rules being made.

Harry Hartfield, spokesperson of Uber was reportedly quoted stating the company is worried about TLC’s rules which may cut the drivers’ ability to earn a living and is working with the stakeholders to limit the consequences for the drivers and riders.

Campbell Matthews, Lyft spokesperson reportedly stated that the company will continue to work to find better solutions for its riders and drivers despite all odds.

Source credit: https://edition.cnn.com/2019/08/07/tech/uber-lyft-nyc-limits/index.html