Taxi service app stopped in New York

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Last month a smartphone app was introduced in New York for the convenience of taxi cab drivers and their passengers, so that they could find each other easily. But according to media reports, the app will now be shut down.

The Uber company had developed the new technology which had started operating six weeks ago in more than a 100 taxis. Travis Kalanick, the CEO of the company said that the demand for the app was high among the passengers, but he also said that the drivers did not sign-in to the app, due to the fear of reprisal from the Taxi and Limousine Commission. According to the guidelines of the city, it prohibits pre-arranged rides in yellow cabs.