The de Blasio administration made its case for temporarily restricting the growth of licenses for ride-hailing services like Uber at a City Council hearing this morning. With congestion in Manhattan getting worse, City Hall’s plan is to cap the number of new for-hire vehicles on city streets for the next year while it studies the impact of the industry on traffic.
Today, the city splits most car services into two categories: medallion yellow taxis and for-hire vehicles (FHVs), which include green boro taxis, livery services, limousines, and drivers for companies like Uber and Lyft. Each has different rules and regulations.
Yellow cabs, which are the only service subject to a surcharge that helps fund the MTA, are limited by the number of medallions. The number of boro taxis, which are supposed to pick up passengers outside the central areas of the city, is capped by state law. But the city has no mechanism to limit the number of black cars, hence City Hall’s need for legislation introduced in the City Council by Transportation Committee Chair Ydanis Rodriguez and Steve Levin.
Since the advent of Uber and other app-based services, the number of FHVs on city streets has boomed, growing 63 percent since 2011. Nearly three-quarters of trips made by the new FHVs originate in Manhattan south of 60th Street, according to DOT, and the city is worried that these trips are a major factor behind the recent increase in congestion in the center of the city, which in turn may explain why bus ridership is dropping faster in Manhattan than in the outer boroughs.
“This decrease in traffic speeds is happening at the same time that overall traffic into the Manhattan CBD has fallen,” said Transportation Commissioner Polly Trottenberg. While traffic in 2014 was 9 percent slower in the Manhattan central business district than it was in 2010, the number of vehicles entering the CBD each day had dropped 6 percent over the same period. The implication: The spike in for-hire cars circulating Manhattan has more than offset the reduction in other vehicles driving into the city center.