Toronto city council passed a surprise motion Wednesday barring ride-hailing companies from hiring new drivers in a bid to reduce congestion and emissions. Both Uber and Lyft criticized the decision, saying it will drive up costs for riders. (The Logic)
Talking point: The freeze was part of a motion mandating zero-emissions taxis and rideshares by 2031. Mayor Olivia Chow, who supported the decision, argued it would also boost drivers’ earnings by limiting competition. In a statement emailed to The Logic, Uber spokesperson Keerthana Rang said that while the company supports the council’s emissions-reduction plan, the cap will increase wait times and costs for riders. Lyft spokesperson CJ Macklin expressed similar concerns, saying the cap would exacerbate downtown congestion by pulling drivers to the busiest areas and limit transportation options outside the core. The cap will be in place until city staff deliver a report on regulating the industry, due by the end of 2024.