New York City extends moratorium on ride-hail licenses

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The growth of ride-hailing companies, such as Uber and Lyft, is at a standstill in New York City. And it will stay that way.

Last summer, the City Council approved a cap on most new for-hire licenses, which was supposed to just last for a year. But Mayor Bill de Blasio announced Wednesday that the cap will be renewed from another year. He also said that the Taxi and Limousine Commission will also limit how much time for-hire vehicles can spend cruising the streets of Manhattan without passengers.

"We also believe this plan will allow traffic below 60th Street in Manhattan to speed up by about 10%," de Blasio said.

Advocates for yellow taxi drivers, many of whom remain in dire straits after the collapse of the taxi medallion market, applauded the announcement.

But no surprise: the ride-hail companies are not on board.

"The mayor's cap will create another medallion system—the same kind that bankrupted drivers and enriched lenders," Uber said in a statement.

And Lyft said, "The mayor's announcement today is misguided and will be damaging to riders and drivers, as further restrictions on rideshare will result in fewer rides and lower earnings."

Lyft added that all parties have yet to analyze the study that the City Council mandated last year.

Some New Yorkers on the streets of traffic-clogged Midtown Manhattan were split on whether the cap will be a good or bad thing.

Uber sued the city over the temporary vehicle cap. the lawsuit is still pending. The city expects Uber will now bring another suit.