NYC’s struggling commuter van industry is getting a much-needed financial boost to help offset high insurance costs and invest in safety and technology upgrades.
Empire State Development (ESD), a New York economic development organization, announced on Monday that it provided more than $2 million through its Commuter Van Stabilization Program (CVSP), launched in September 2024, to help drivers in the often-overlooked commuter van industry in NYC.
Commuter vans provide pre-arranged transportation to passengers in the city. Licensed by the NYC Taxi and Limousine Commission (TLC), they are authorized to operate within specific geographic areas, usually in neighborhoods underserved by public transportation.
However, the industry is experiencing challenges, including a decline in the number of available vehicles over the previous decade, advocates have said. Also, drivers often face high costs, especially when it comes to paying for insurance.
ESD representatives said the CVSP has provided insurance subsidies of up to $40,000 per van and reimbursements of up to $10,000 for safety and technology improvements, including dash cams, GPS tracking and advanced driver assistance systems.
Reps also stated that the program has supported over 50 vans and disbursed more than $2 million to commuter van operators, resulting in a 50% increase in TLC-licensed vans operating citywide.
Hope Knight, president, CEO and commissioner of ESD, explained in a press release that the CVSP helps support small businesses and protect jobs while providing a “safe, reliable and affordable” transportation option for New Yorkers.
“The Commuter Van Stabilization Program is making a real difference for operators and riders across New York City,” the executive said. “By helping cover steep insurance costs and supporting critical safety upgrades, ESD is strengthening an industry that thousands of working families rely on every day.”
NYC Council addresses challenges plaguing NYC commuter vans
The announcement follows a Sept. 15 NYC Council hearing that addressed commuter van challenges, including the decline in availability.
“Many New Yorkers choose them for their reliability and ability to bridge gaps in existing transit systems,” Queens City Council Member Selvena Brooks-Powers said during the hearing. “However, the licensed commuter van industry has struggled since the pandemic, with over 500 licensed vans in 2014 down to less than 40 a decade later.”
In addition to the ESD’s insurance relief and other funding, legislation is sitting in the NYC Council aimed at helping the commuter van industry.
Brooks-Powers introduced two bills, Intros. 1346 and 1347, that would provide a periodic study of the commuter van industry and an enforcement checklist aimed at cracking down on illegal vehicles, allowing maximum penalties to be applied when they break multiple rules at once.
Both bills are laid over in the council’s transportation and infrastructure committee.
Meanwhile, NYS Assembly Member Khaleel Anderson, who represents parts of Queens, applauded ESD for its work on the stabilization program.
“Our operators, long burdened by high insurance costs, have access to safety and technology upgrades through this program,” Anderson said. “The CVSP is a meaningful investment that acknowledges the essential role commuter vans play in augmenting our mass transportation network. To ensure continued progress and long-term sustainability, this industry needs additional support from the state.”
More information about commuter vans in NYC is available at nyc.gov under the TLC.
