To find their way to profitability, ride-hailing companies should start by reevaluating the markets in which they operate.
Local governments, like New York City's, are implementing strict legislation on ride-hailing firms which could limit profitability. New York City legislation in August 2019 that extended a limit on the amount of for-hire vehicle licenses issued, in turn restricting the number of drivers available for ride-hailing platforms. Moreover, the city implemented a $17.22 per hour minimum wage in February 2019, which Juno and Lyft fought in court.
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