Underregulated Uber

Last week, NYC imposed a series of regulations that last one year on Lyft/Uber that will primarily reduce their supply of drivers. Until now, profit maximization for Uber/Lyft simply meant having more drivers. That gave Lyft/Uber no incentive to optimize driver time or capital. Now, ride-hailing app firms will manage their fleets more productively. This will increase driver productivity, boost pay, and most importantly reduce traffic. Next up, congestion pricing?