(Reuters) – Israel's transport company Gett said that it will end its modern travel business in New York City on Monday, stating “misleading regulations” enacted to combat city congestion earlier this year.
FILE FILE: Uber Lyft and Juno logos appear on a car driving up 6th Avenue in New York City, New York, U., July 27, 2018. REUTERS / Mike Segar – / Photo File
The company told Juno users on Monday that their service would cease operating that evening, directing riders in place of former Lyft Inc competitor, who has achieved a strategic partnership with it. Starting in 2020, users of the Gett taxi app will be able to request Lyft bikes.
Gett and Lyft refused to provide the financial details of their partnership.
Gett said that it would focus more on the corporate transport sector.
There was increasing pressure on the company as travel regulations damaged damage, making profitability very difficult and difficult.
Last year the Taxi and Limousine Commission (TLC) in New York put in place a number of laws that challenge how travel-sharing companies operate in North America's largest city, one of the biggest markets in the industry.
Since January, private travel journeys below 96th Manhattan Street are taxed at $ 2.75, and the split tours are charged at 75 cent. The charge must be passed on to passengers and cannot be taken out of drivers' wages, the law says.
In addition, new rules limit the number of cars rented, rent and minimum wages based on 80,000 city travel drivers based on the amount of time they spend on passenger transport.
Starting next year, the law limits drivers of time wearing “cruising” – driving to new passengers or waiting for them to pick up.
Juno, who launched its NYC illuminating service in 2016, launched himself as someone who kept drivers happy by taking a smaller commission from each journey. Gett got the company in 2017 for $ 200 million.
The closure of Juno in New York City is further evidence that the TLC approach has created an uneven playing field that reduces the choice for riders and drivers, ”Lyft said in a Monday statement.
Uber Technologies Inc, Chief Executive of Khosrowshahi, asked for the impact of NYC's investors during third quarter earnings on 4 November that significant price increases were slowing down the growth of trips, but that the firm was “resilient to good for the environment around it. ”
Reporting by Tina Bellon in New York; Edited by Marguerita Choy
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