A drop in incomes has demoralized many drivers in New York City, leading to six suicides among cab and delivery drivers in recent months.
This was taken into account when New York City voted to cap Uber’s and Lyft’s vehicle licences, making it the first city in the world to take such actions.
New York City will soon impose a package of measures that will also include setting a minimum wage for drivers.
London became the first Western city to completely ban the services offered by Uber. The company was told last year its licence in London would not be renewed because of concerns about public safety and security, such as background checks on drivers.
Uber has since then passed three tests, saying it has changed its ways and has recognised it was at fault. It is trying to get back its licence.
In New York, a drop in incomes was caused by an explosive growth of for-hire vehicles in the city, adding to the congested streets.
The New York City Council on Wednesday agreed to cap the number of licenses for ride-hailing services such as Uber Technologies Inc and Lyft.
News reports stated that the cap will be for one year.
It deals a blow to the companies that were banking on the largest US city for their regular sources of revenue.
Taxi drivers in Malaysia, in particular, are campaigning for a total ban of ride-hailing services. Uber, a pioneer in Southeast Asia, had a hard time getting the Malaysian authorities to take actions against rogue taxi drivers.
Uber drivers were beaten, their cars damaged by taxi gangs that were chasing their customers away.
The NY City package is opposed by major ride-hailing companies but it is aimed at reducing traffic congestion and increasing driver paychecks in the wake of the explosive growth of for-hire vehicles.
New York Mayor Bill de Blasio said in a statement to the media he intended to sign the bills into law, which would start the 12-month period where no new for-hire vehicle licenses would be issued, with an exception for wheelchair-accessible vehicles.
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.
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