Harder to Hail

The Story

The city council has passed legislation regulating the For Hire Vehicle (FHV) industry, capping the number of new cars and mandating a minimum wage for drivers. Advocates contend that the industry’s rapid growth should be checked, and that drivers need wage protections. Interfering in a new and dynamic industry in order to protect established players — like yellow cabs — will raise prices for New York consumers and limit opportunity for low-income workers. 

The Facts You Need to Know

  1. Demand: As consumer demand has soared, the app-based FHV industry has added an average of 3,000 new drivers per month since 2012. Read more.

  2. Protection: Capping new licenses will reduce opportunity for low-skilled workers while protecting an entrenched industry. Read more.

  3. Distortion: Minimum-wage laws distort labor markets, raise prices, and limit choice. Read more.

“Unfortunately, the real minimum wage is always zero, regardless of the laws…”

Thomas Sowell

Twitter Take

The Past is Present

No, Driving for Uber Is Not a Payday Loan By Jared Meyer Nick Archer, Reason (July 11, 2016)

“Is Uber, a ridesharing company, offering well-paid, flexible employment options or taking advantage of drivers who do not understand the raw deal that they are receiving?”

And in other news...

“It appears that the Williamsburg exodus has begun — with apartment inventory shooting up by 25 percent and rent slipping back down to 2015 prices — thanks to the L train shutdown.”