Uber takes legal action against New York City, states ‘travelling cap’ threatens its organization design

Uber states brand-new guidelines around traffic and blockage in New York City threaten its organization design. The ride-hailing business submitted a claim versus the city on Friday that intends to remove a law restricting the quantity of time motorists can invest travelling specific hectic parts of Manhattan without a guest.

“Drivers’ flexibility is already being threatened by Mayor de Blasio’s regulations, and the cruising cap will only make that worse,” an Uber representative stated. “This arbitrary rule used a flawed economic model, did not take into account how drivers are affected by previous regulations.”

New York City very first passed a law in August 2018 that topped the variety of ride-hailing cars that’re permitted on its streets from services like Uber and Lyft. New York Mayor Bill de Blasio stated the relocation intended to combat blockage and supply greater earnings to motorists. The law was set to end after one year, however the city voted to extend it forever in June.

With this extension, the cap furthermore set a limitation on the number of empty cars can “cruise” the streets of Manhattan’s main enterprise zone. Specifically, automobiles can be empty in set parts of the city for just 31% of the time, other than after 11 p.m. The cap does not use to wheelchair available cars or all-electric automobiles. 

Another brand-new guideline Uber is combating in its suit is a restriction the city set up on providing brand-new licenses to for-hire cars (FHV). This restriction is set to last through August 2020.

“Extending the cap on the issuance of new FHV vehicle licenses for at least the next year in tandem with the cap on cruising is not only legal, it will bring needed relief to congested streets and hardworking drivers,” stated Seth Stein, representative for de Blasio. “The city’s rules make our streets safer and are in the best interest of all New Yorkers.”

New York City has actually been punishing ride-hailing services over the in 2015. Along with passing laws around blockage, it set guidelines around minimum earnings for motorists, guaranteeing they get at least $17.22 per hour. 

Some motorists state the brand-new guidelines have actually caused less trips, while others state they’re now able to earn a living wage.

“Uber wants to be able to flood the streets without limit and keep app drivers with their cars empty for longer, all the while wiping out yellow taxis and other sectors,” stated Bhairavi Desai, the executive director of the New York Taxi Workers Alliance. “Uber has plenty of money to sue against life-saving rules that protect drivers drowning in a race to the bottom — but apparently not enough money to actually pay drivers.”

Originally released Sept. 20, 1: 34 p.m. PT.
Updates, 1: 55 p.m.:  Adds remark from Uber representative; 2: 26 p.m.:  Adds remark from de Blasio representative.