The New York City Council might come to the rescue of the ailing yellow cab industry in city. Unable to keep up with competition from ride-sharing services like Uber and Lyft, the city’s yellow cabs have seen the value of their medallion drop by 90 percent, the New York Post reports.
The issue came to the fore at the City Council’s transportation committee meeting on Monday. Medallion owners complained that they had too many restrictions imposed on them, and that the ride-sharing services were benefitting from the lack of any major restrictions.
For instance, there is a limit to the number of yellow cabs, and the service can’t increase fares. Car-sharing services on the other hand can keep increasing their roster and often charge more during “surge-pricing” periods.
The Council’s transportation committee agreed to look into the matter thoroughly and is examining various proposals; they might launch a task force and initiate a study to see the impact of ride-sharing services on the industry.
Another option would be to limit the number of cars that can operate for ride-sharing services; also on the table is allowing medallion owners to operate two yellow cabs for each medallion.