Ride-sharing giants Uber and Lyft have halted the hiring of new drivers in New York City, following legislation that required the companies to pay workers at least $17.22 per hour, according to Politico.
“We do have a waitlist and will let drivers know when they can apply to drive,” a Lyft spokesperson told Politico.
New York City council passed a bill hoping to decongest the city’s streets of ride-hailing cars by posing a cap on the number of drivers companies could have on the road. With an influx of ride-sharing companies such as Juno, and Gett, riders have more options in the city. However, the competition is cluttering streets with drivers looking for customers.
“As drivers exit the industry and demand from riders increases, we will once again seek to add new drivers,” Uber spokesperson, Josh Gold, said to Politico.
Lyft sued New York City in January, alleging the new rules will create unfair competition between ride-hailing companies and taxis. Uber has also sued the city over its car limit.
It’s unclear whether or not other ride-sharing companies in the city will stop hiring more drivers. The Taxi and Limousine Commission told Politico that the “driver sign-up limit was a decision taken solely by Uber and Lyft.”