Uber and Lyft File Lawsuit Against New York City Rule

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Andrew Wagner

Uber and Lyft have filed lawsuits against a NYC rule that limits how long drivers can cruise without passengers.

Uber and Lyft have sued New York City, in the attempt to repeal a new rule limiting the time drivers are allowed to spend cruising in Manhattan without passengers, according to Business Insider. The rule is designed to reduce congestion with a 31 percent limit on how much time drivers can spend without passengers in Manhattan's busiest areas.

The lawsuits filed by Uber and Lyft argue that the rule referred to as the "cruising cap" imposes an unnecessary obstacle for ride-hailing companies like Lyft and Uber in favor of taxis. Lyft spokesman Campbell Matthews released a statement saying, "This rule is not a serious attempt to address congestion, and would hurt riders and drivers in New York."

The rule was implemented by the city's Taxi and Limousine Commission (TLC) and states that drivers need to have passengers at least 69% of driving time. TLC responded to the lawsuit by stating, "We will vigorously defend against this suit, and we will continue to fight for safer, less congested streets and for drivers' rights."

TLC reports that ride-share vehicles make up close to a third of peak-time traffic. Uber and Lyft have been disconnecting drivers from their apps during periods of low demand in the attempt to comply with the city regulation.

Uber and Lyft have both filed separate lawsuits against the cruising cap rule, and claim that it will prevent drivers from earning money and low-income New Yorkers of ride services in remote areas where taxis are not prevalent.

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