The New York City Council voted on Wednesday to place a one-year freeze on new licenses for ride-sharing services like Uber and Lyft.
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Under the cap, drivers will be required to be paid a minimum wage and ride-hailing companies will be granted licenses for wheelchair-accessible vehicles.
“The City’s 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion,” Uber said in a statement to FOX Business.
Supporters of the cap bill say it will protect the financial stability of drivers already in the city as well as taxi drivers and reduce road congestion.
“The minimum wage is great for drivers in today’s bill and I think a temporary cap will help them along the way as well,” Independent Drivers Guild founder Jim Conigliaro Jr. said during an interview on FOX Business’ “Making Money” on Wednesday.
The New York City Taxi and Limousine Commission reports that the number of ride-hailing vehicles has jumped from 12,600 in 2015 to an estimated 80,000 this year.
Mayor Bill de Blasio and Corey Johnson, the City Council speaker, say the bill will help cut down on the amount of congestion on the streets of New York.
“Uber will do whatever it takes to keep up with growing demand and we will not stop working with city and state leaders, including Speaker Johnson, to pass real solutions like comprehensive congestion pricing,” Uber said in a statement.