New York City is making every Uber ride more expensive – here's why they did it

A vote from the New York City Council Wednesday will likely lead to higher fares on ride-sharing services like Uber and Lyft, and it might spread to other cities soon.

'Unchecked growth' no more

The motion passed by the city council would limit the number of drivers in the city for one year and also impose a minimum wage on drivers for ride-sharing services.

During the year that ride-sharing drivers are capped, the Taxi and Limousine Commission will perform a study on the effect of such services on the city.

Mayor Bill de Blasio praised the regulations in a statement criticizing the "unchecked growth" of ride services.

"Our city is directly confronting a crisis that is driving working New Yorkers into poverty and our streets into gridlock," de Blasio said in the statement.

"The unchecked growth of app-based for-hire vehicle companies has demanded action," he added, "and now we have it."

A TLC study found that 80,000 vehicles in New York City operate as app-based ride services, and accomplish a staggering 17 million rides per month.

Uber and Lyft are not happy

Not surprisingly, Uber and Lyft released statements criticizing the motion by the New York City Council.

"The City's 12-month pause on new vehicle licenses will threaten one of the few reliable transportation options while doing nothing to fix the subways or ease congestion," the company said in a statement.

"These sweeping cuts to transportation will bring New Yorkers back to an era of struggling to get a ride, particularly for communities of color and in the outer boroughs," said Lyft's vice president in a statement.

Here's a news report on the NYC vote: