>> New York City dealing a blow to ride-hailing services like Uber and Lyft. The city council on Wednesday voted to cap the number of for hire vehicle licenses for a year, and Mayor Bill de Blasio said he intends to sign the bills into law. It's the first cap by any major U.S. city and part of the package of measures also includes setting a minimum wage for drivers.
Reuters correspondent Heather Somerville.>> It is a big deal for the companies because it restricts their ability to grow, which is what private venture-backed companies want to do. What it means, though, is that ride-hailing services like Uber and Lyft have really worsened traffic congestion in major cities. And it's not just New York.
In San Francisco, there are investigations ongoing looking into whether Uber, Lyft are public nuisances because they contribute to traffic.>> The number of ride-hailing cars operating in the city has jumped over six times to about 80,000 from 2015. Contrast that to about 14,000 yellow cabs in the city.
New York is Uber's largest U.S. market and the company along with Lyft. And a smaller operator, Via, all oppose the cap. But the New York Taxi Workers Alliance, an 18,000 member union representing the city's taxi drivers, hailed the council's vote as a victory.