Uber sues over ride-hail cap

Ubers in New York City.
Ubers in New York City.
Shutterstock
Ubers in New York City.

Uber sues over ride-hail cap

Uber argues the cap is an overextension of the city's authority.
February 19, 2019

First, there was the congestion fee. Next came a new minimum wage. Now, New York is tussling with ride-hail companies once again. New York City’s landmark cap on app-based for-hire vehicles is the subject of a suit filed by Uber on Friday, which argues that the cap is an overextension of the city’s authority.

Last summer, New York City Council passed a ride-hail legislation package, including a one-year cap on new app-based vehicle licenses, which would allow the city to study the industry’s effect on traffic congestion and how best to regulate the services going forward.

In the lawsuit filed in Manhattan Supreme Court on Friday, however, Uber argues that the cap gives too much power to the Taxi and Limousine Commission to permanently cap new licenses at the end of the one-year period. Uber also argued that the cap prevents drivers from taking advantage of the new minimum wage law – most recently the subject of a lawsuit filed against New York City by Uber competitors Lyft and Juno.

Whether or not Uber is successful in overturning the city’s cap, it’s likely that this latest lawsuit is not the last in the ongoing war between New York and ride-hail companies.

For the rest of today's tech news, head over to First Read Tech.

Annie McDonough
Annie McDonough
is a tech and policy reporter at City & State.
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