New York has become the first major US city to approve a cap on ride-hail car licences and set minimum pay conditions for drivers, BBC repports.
The bill will impact popular app-based services like Uber and Lyft, who have both spoken out against it.
Yellow cab drivers and anti-congestion campaigners have pushed for regulation after the number of app-based cars soared in recent years.
About 80,000 now operate throughout the city, versus just 13,500 yellow cabs.
Taxi drivers demonstrated in support of the bill outside the headquarters of the New York City Taxi and Limousine Commission (TLC) this week, holding signs with the names and faces of six taxi drivers who had taken their lives since December.
Campaign and union groups directly linked the financial pressures caused by the growth of ride-hail car services to the driver suicides.