New York City

Uber and Lyft’s terrible, horrible, no good, very bad year

Can the app-based for-hire vehicle industry regain its mojo in New York City?

Lyft.

Lyft. Shutterstock

By Zach Williams

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The past year has not been a great one for Uber and Lyft in New York City. The New York City Council recently passed new legislation that limits how the companies can dispatch drivers and places an indefinite freeze on the number of for-hire vehicle licenses issued by the city. This comes after ride-hail app trips became subject in January to a $2.75 congestion charge to enter Manhattan – and lawmakers have not signaled that they are finished cracking down on the industry anytime soon. 

The companies’ responses have hardly mitigated how the changes have affected their bottom lines, according to Wired, which notes that “The ride-hail companies have responded to the rules, which they say have been instituted too quickly for anyone to understand their effect, with cat-and-mouse tactics aimed at keeping riders in cars and revenues in pocket.” Raising their prices has resulted in stunted growth in some areas of the city and the companies are continuing to tweak how they manage their driver fleets. 

Can the app-based for-hire vehicle industry regain its mojo in New York City? Maybe the companies peaked too early, thus inviting backlash from the city and industry competitors alike. The controversial rise of electric scooter apps and of other travel alternatives is hardly helping.

For the rest of today's tech news, head over to First Read Tech.

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