New York is to limit the number of new Uber and Lyft drivers allowed to operate in the city.
The city council has voted in favour of a 12-month cap on all new for-hire vehicle licences, except for wheelchair accessible vehicles.
It also wants to see minimum pay standards on drivers, which will be regulated by the Taxi and Limousine Commission.
New York Mayor Bill de Blasio has pledged to sign off the bill into law.
"More than 100,000 workers and their families will see an immediate benefit from this legislation," he said, but the move is expected to lead to a rise in taxi fares.
According to a TLC study, there are 80,000 drivers working for ride hailing apps in the city compared to about 13,500 yellow cab drivers.
The TLC report found 85% of drivers earn much less than the $15 an hour minimum wage that takes effect in New York later this year.
In response, Uber said: "Uber will do whatever it takes to keep up with growing demand and we will not stop working with city and state leaders."
