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Home / Business / New York Gig Economy in Danger as City Crunches on App-Based Services | US news

New York Gig Economy in Danger as City Crunches on App-Based Services | US news

New York City has a bad summer in the gig economy.

This month, New York is the first major city to cover the number of cars that companies such as Uber and Lyft may bring to the streets.] A few weeks earlier, the city council approved and New York mayor Bill de Blasio agreed , signed a bill against Airbnb, which provided for the company to forward the names and addresses of all its hosts to a law enforcement agency

As a one-two punch, New York has come to the forefront of pressure in cities around the world, to combat the app-based companies that are now among the biggest players in the transportation and housing market.

"At least, it should make it clear to other cities that reasonable regulation is possible," said Corey Johnson, city council spokesman, who made the tech company his first prominent legislative initiative.

Each app presented its own challenges to city officials in New York – and each of them had a fierce but failed attempt to stop the new rules.

Uber unleashed its political power in 2015 and was able to fight back a similar effort to impose a ceiling that broke after a public lobby flash

This time the company once again argued that capping would drive up prices and make it more difficult to drive in the outskirts of the city, where transport options are lower than in Manhattan representatives with the message: "URGENT: your journey is in danger."

And she urged civil rights leaders to back up the case that the trips were indispensable to the black New Yorkers who were discriminated against by the city's yellow taxis] The legislation, which sets a cap for one year, went anyway fast.

"You have not noticed that times have changed," said Mitchell Moss, head of the Rudin Transportation Center at New York University [19659002] The number of cars driving on the clogged roads has exploded – since 14 August, when the upper limit of less than 47,000 at the beginning of 2014 took effect, to 113,000 licensed vehicles.

The turn to e-hailing The city's famous yellow taxis were shattered, and some drivers were guilty of spilled medallions.

Six drivers killed each other in less than a year.

"You do not understand how bad that is," said the yellow cab driver Abraham Lobe, a member of the New York Taxi Workers Alliance, saying that once a driver could make $ 200 in a single morning or evening rush hour, now are it's less than $ 50.

In addition to limiting rental car licenses, another law sets minimum revenue for app drivers – companies need to make the difference if drivers do not make enough of ticket prices. will threaten one of the few reliable transportation options, doing nothing to repair the subways or relieve congestion, "said a Uber spokeswoman, Alix Beginning.

But Uber driver Sohail Rana described the company's argument as" complete lie "" We were hoping that the law would make it easier for the drivers. "

" Five drivers are fighting for a ride, "said Rana, a member of Indep Endent Drivers Guild.

After New York's vote on Uber, Mayor of London, Sadiq Khan, said he also wanted a cap there.

While officials rejoiced that Uber was causing congestion on the streets, they were even harder on Airbnb, helped by the politically influential Hotel Workers' Union. The company paralyzed rents, while landlords took flats from the housing market and instead took them to tourists leased. Airbnb countered that most of his hosts were average New Yorkers who made their living in their own homes.

It was already illegal under New York law to rent a whole apartment for less than a month.

But under the new law of the city, Airbnb will be obliged to hand over the names, addresses and other information about all its hosts to a special enforcement office, which could impose fines on them and drive some off the platform. 19659002] Lynn, an Airbnb hostess in Staten Island who would not name her surname for fear of retaliation, said she wanted to give up her bid and sell her home instead of meeting the requirement.

Lynn and her husband own a two-family home and came to Airbnb in 2014 after losing a job the same year. They offer the unit they live in and stay with their parents when they are let.

"It has helped to keep everything afloat in recent years," she said. "We can not keep it without the extra income we get from renting."

When a similar requirement came into effect in San Francisco, the number of Airbnb offers was halved. Airbnb was sued on Friday to block the proposed New York law.

Other cities have taken steps to curb AirBnb. Barcelona has set up a cadre to eradicate unlicensed rentals. Iceland limited the number of days residents could rent in their homes for up to 90 days a year before paying business tax, and created a committee to find illegal units.

Japan passed a temporary housing bill restricting leases to 180 days a year. He demanded the registration of hosts, and local governments went further, with a Tokyo station banning all leases on weekdays.

New York's approach is one of the hardest, NYU professor of business Arun Sundararajan said

"We have the Most restrictive Airbnb laws, and I think it will hurt the city in the long run."

But Veena Dubal, an associate professor of law at the University of California, Hastings College of Law, told New York an important position

"This could send a signal to cities across the country that they are overseeing these big companies and that does not mean you are against the economy, "she said.

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