New York City to cap the number of Uber and Lyft drivers

New York City to cap on the number of Uber and Lyft drivers - Bent Corner

New York City has become the first major municipality in the United States to put a cap on the number of ridesharing drivers allowed to exist within its city. From CBS News:

New York City is hitting the brakes on fast-expanding ride-hailing services like Uber and Lyft. Lawmakers on Wednesday approved a proposal to freeze new licenses for car service drivers for one year, becoming the first large city in the U.S. to impose such restrictions.

This is a very bad idea. It’s anti-consumer. By limiting the number of Lyft and Uber drivers available to riders, the taxi industry can now go back to raking in the money it was able to subject consumers to before ridesharing became a thing. The taxi industry has had years to establish itself as a positive entity in the market. They failed to do that. In fact, they burned a lot of calories doing the complete opposite.

Taxis suck and I hate them

People generally hate taxis. I sure do. The last time I used a taxi was in June 2008. We were back in California on vacation and the night before our flight to Maryland, we stayed at the Burbank Holiday Inn. The reason we stayed there was that it is close to the Burbank airport (3 miles) and offered a free shuttle service to the airport. We discovered the next morning that the free shuttle service didn’t start till 6:30 am. The problem was we had to check in to JetBlue at 6:00 am. We had to take a taxi. I called one and when the driver arrived, he informed me in an eastern European accent that he would take us for a flat $20.

I didn’t have a choice. He drove us to the airport without the meter running. The ride took only a few minutes. Taxis aren’t allowed to drive passengers without the meter running. I promised myself I’d never use a taxi again.

Getting an Uber or Lyft in New York City will be harder with each passing day

Uber and Lyft rely on a business model that depends heavily on constantly adding new drivers. The reason for this is drivers generally don’t stick around very long. It’s not like they turn in their two-week notice or call to have their driver account deleted. They just don’t drive anymore. You can go months without driving and then log in and start accepting rides again like nothing happened. I know this because if done that.

Unless Uber and Lyft make major changes to the way they manage drivers in New York City, getting a rideshare driver in New York City will get a lot harder.

Author: Rick Rottman

My name is Rick Rottman and I live in Maryland. This is my blog. If you'd like to know more about me, check out my About page.

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