The app-dispatch car service industry dominated by Uber and Lyft is beginning to face a more demanding regulatory environment. New York City, their largest market by far in the U.S., is playing a pioneering role, evolving a triad of policies to regulate the industry. These policies hold considerable promise for other cities.

The policy triad consists of a pay standard for drivers, managed growth of the number of app-dispatch vehicles and a cap on cruising time in the city’s densest business districts. With these policies, New York City is charting a course that delivers convenience for consumers, pay equity for drivers, and reductions in congestion and greenhouse gas emissions.

The app-dispatch industry became enormous very quickly. The number of daily trips soared from 80,000 at the beginning of 2015 to 720,000 in the first five months of 2019.

That expansion enhanced the supply of convenient transportation services in the boroughs outside of Manhattan. But it also drove down average driver earnings for those cars and for yellow cabs, pumped 60% more greenhouse gas emissions into our air, and further clogged Manhattan streets. Cars working for Uber and Lyft account for 30% of all vehicular traffic in the busiest parts of one of the densest urban concentrations in the world.

Fortunately, New York City’s elected officials and its Taxi and Limousine Commission have addressed these problems.