Uber Hit With Cap as New York City Takes Lead in Crackdown

New York is the latest city to grapple with questions over how to regulate the company. In London, Uber’s most lucrative European market, Uber recently regained its taxi license after the company agreed to stricter regulations, including providing the city with traffic data. Uber has also faced regulatory battles in American cities, like Austin, Tex., and in countries like Canada, Brazil and Italy.

[Read more about the potential impact of the Uber cap.]

The company’s new chief executive, Dara Khosrowshahi, has embarked on a global charm offensive to repair the company’s image after a series of controversies, including complaints over gender discrimination and harassment.

Uber criticized the Council’s decision to approve the cap, but said the company would work to keep up with growing demand despite the limit on new vehicles.

“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,” Josh Gold, a spokesman for Uber, said in a statement.

Uber said the company would immediately reach out to tens of thousands of for-hire vehicle owners who are already licensed but work for other services and try to recruit them to work for Uber. The company said it would also continue to press for another solution, known as congestion pricing — a proposal to toll drivers entering Manhattan’s busiest neighborhoods and that would require approval from state lawmakers.

Many experts believe congestion pricing is the best way for New York City to fix congestion and secure the funds needed to fix the subway. Mr. Johnson supports the idea, but Mr. de Blasio has opposed it. Gov. Andrew M. Cuomo, who controls the subway, has said he will push for congestion pricing during the next state legislative session to help pay for an overhaul plan for the subway.

The City Council also moved recently to regulate Airbnb, another tech company that has upended the hotel industry. Mr. Johnson, a Democrat who became City Council speaker in January, has quickly taken bold steps to make a name for himself on high-profile issues, including convincing the mayor to pay for half-price MetroCards for poor New Yorkers.

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