New York gig economy under threat as city cracks down on app-based services

    The gig economy is having a bad summer in New York City. New York this month became the first major city to cap the number of cars that companies like Uber and Lyft are allowed to put on the road.

 Just weeks earlier, the city council approved and New York’s mayor, Bill de Blasio, signed a law to crack down on Airbnb, requiring the company to hand over the names and addresses of all its hosts to an enforcement office.

    With the one-two punch, New York has jumped to the forefront of a push in cities around the world to clamp down on the app-based companies that are now among the biggest players in the transportation and lodging markets. “What we did should at least make it clear to other cities that commonsense regulation is possible,” said Corey Johnson, the city council speaker who made the tech company crackdowns among his first high-profile legislative pushes.

    Each app presented its own set of challenges for city officials in New York – and each mounted a fierce but failed bid to stop the new rules. Uber flexed its political muscle in 2015 and was able to beat back a similar effort to impose a cap, which collapsed after a public lobbying blitz by the company.

 This time around, the company again argued that a cap would drive up prices and make it harder to get a ride in the city’s outer boroughs where transportation options are more sparse than in Manhattan – asking its customers to contact their representatives with the message: “URGENT: Your ride is at risk.” And it enlisted civil rights leaders to make the case that ride hailing was essential for black New Yorkers, who have faced discrimination from the city’s yellow cabs. The legislation, which puts a cap in place for one year, quickly passed anyway.

    The number of cars plying the congested streets has exploded – to 113,000 licensed for hire vehicles as of 14 August, when the cap took effect, up from fewer than 47,000 at the beginning of 2014.

 The turn to e-hailing clobbered the city’s well-known yellow cabs, with some drivers buried in debt from medallions which have plunged in value. Six drivers have killed themselves in less than a year. “You don’t understand how bad it is,” said yellow cab driver Abraham Lobe, a member of the New York Taxi Workers Alliance. He said that once, a driver could make $200 in a single morning or evening rush hour. Now, it’s less than $50.

    In addition to the cap on licenses for hire vehicles, another law will establish minimum earnings for app drivers – requiring the companies to make up the difference if drivers don’t make enough from fares.

https://goo.gl/A9mwPy
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 NEWCASTLE

   Another taxi driver demonstration caused congestion in Newcastle city centre

Motorists in Newcastle city centre faced disruption after a second day of action by some taxi drivers.

Taxis descended on the same rank between Haymarket and Eldon Square on Tuesday, creating congestion in the area, with buses struggling to access the bus station.

The disruption follows Thursday’s widespread traffic chaos, organised by the newly-formed Newcastle Hackney Carriage Driver Association (NHCDA) which intends to raise awareness about a number of issues for drivers in the city.

 According to organisers, who dubbed it a ‘Go to Work Day’, the action is being arranged to highlight the lack of rank spaces in Newcastle .

On Thursday buses were stuck in traffic for an hour and at one point all services were told to avoid the area altogether, throwing timetables into disarray and leaving passengers lining up.

Speaking after last week’s action, Newcastle councillor Arlene Ainsley, cabinet member for transport and air quality, said: “We have been working closely with representatives from the newly formed Newcastle Hackney Drivers Association to identify new rank spaces across the city, along with improved signage.

“It is unfortunate that rather than continuing to engage with us through this new representative group they have instead resorted to an unofficial protest causing disruption to the city centre impacting on the journey of hundreds of road users.

“I recognise the Hackney carriage drivers are concerned by the number of licenses being granted to private hire operators but this has been seen in cities across the country because by law, local authorities are not able to impose a cap on the number of licences we issue.

“The council regards taxis to be an essential part of our public transport offer in the city.

“We are keen to work with the taxi trade to develop locations that work in the best interests of all road users and the city’s plans to improve air quality.

“We would encourage the association to continue to engage with us and take productive steps to improve the situation.”

https://goo.gl/5LveBn