The New York City Council voted Aug. 8 to put a yearlong licensing limit on the number of drivers for ride-hailing apps while the city studies the industry, The New York Times reports.
New York is the first major U.S. city to impose such restrictions, and the legislation would also allow New York to establish minimum pay rates for drivers.
"More than 100,000 workers and their families will see an immediate benefit from this legislation," said New York City Mayor Bill de Blasio, according to The New York Times. "And this action will stop the influx of cars contributing to the congestion grinding our streets to a halt."
Uber said the restrictions will result in higher prices and longer wait times for passengers and warned the legislation will not allow the company to provide adequate alternatives to New York City's struggling public transportation system.
"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 prepared statement.
New York City's taxi industry has long supported caps on its ride-hail competitors, as the price of a taxi medallion has dropped from more than $1 million to under $200,000.