Watch the NYC Shuffle: Solo online guitar lesson by Joe Deloro from Blues Rock Road Trip
Just as Blues-Rock developed in the 1960's, so did Jazz-Rock Fusion in the 70's. Depending upon the ages and backgrounds of the musicians involved though, the music consisted of significantly varying degrees of Jazz, Rock, Funk, Classical, etc. Steely Dan and their evolving posse of session men were without a doubt, the most commercially successful Jazz-Rock band of the decade. NYC Shuffle is loosely based on, "Chain Lightning", one of their Bluesier efforts and therefore in the Blues-Rock zone.
Although recorded in L.A. in 1975 for their Katy Lied album, the jazzy vibe of "Chain", as well as the Dan itself, had more to do with their home turf, New York, than anywhere else. That establishes the New York/L.A. connection listed above. Also like many East Coast bands, Steely Dan was based in L.A. during that time. Mostly because it was home to all the major American recording companies of the era, and therefore the place to be if you had any thought of having a recording career.
As the 70's wound down, things had changed and Jazz-Rock was played out. Punk and hometown Heavy Metal were now thundering on the horizon. A new era was beginning again. Steely Dan moved back to the Big Apple, and continued on for awhile. L.A. adjusted, and it's still the center of the recording industry today.
The most important point here though is the contribution of Steely Dan's music to the vocabulary of Blues-Rock guitar. By incorporating elements of Jazz they helped to modernize and move it forward.