After the city passed new rules designed to get a grip on the rising growth of ride-hailing companies, both Uber and Lyft have now stopped accepting new drivers on their platforms in New York City. Uber says that it’s no longer accepting new drivers “in part to new TLC regulations,” by which it means the new Taxi and Limousine Commission regulations.

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The New York City Council passed this legislation in December last year. It mandates that ride-hailing companies pay their drivers at least $17.22 per hour after expenses. The formula is based on the “utilization rate” which makes up the share of time that a driver spends with passengers in their vehicle compared to the time they spent idle, waiting for a fare.

The rules also impose penalties on companies that run too many cars on the city’s streets without passengers. The higher a company’s utilization rate, the less it has to pay drivers in order to meet the new wage requirements.

“Because of TLC regulations, we’re currently not accepting new drivers in New York City,” Lyft said, adding that “We do have a waitlist and will let drivers know when they can apply to drive.” Uber adds that it will once again seek to add new drivers as existing ones exit and the demand from riders increases.

Filed in Transportation. Read more about and . Source: politico

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