Uber Files Lawsuit Against New York City Over Ride-Hailing License Cap
Uber challenges New York City's year-long cap on new ride-hailing driver licenses in a newly filed lawsuit. The company seeks to overturn the restriction, which city officials implemented to reduce congestion and protect traditional taxi drivers.
Uber sues New York City over a year-long cap on new licenses for ride-hailing vehicles. The City Council implements this restriction in August 2018 to limit the number of vehicles on the road and reduce traffic congestion. Uber files the lawsuit on Friday in an effort to reverse the cap and resume issuing new licenses to drivers.
The license restriction earns strong support from yellow cab organizations, which argue that the rapid influx of ride-hailing drivers severely damages their livelihoods. Alongside limiting vehicles, the new city rules allow the state of New York to establish a minimum hourly wage for ride-hailing drivers. These combined measures aim to level the playing field between traditional taxis and app-based services.
This legal action follows a similar move by Lyft, which sues earlier in the year to overturn the state's minimum pay requirement for drivers. The ongoing legal battles highlight the deep tension between modern ride-hailing companies and local regulators. As Uber challenges the license cap in court, the future of ride-hailing regulation in New York City remains uncertain.