Uber Sues NYC To Overturn Driver Cap Law


Last summer, New York City approved legislation that halted the issuing of new licenses to ride-hailing drivers for companies like Uber and Lyft for 12 months (and set a minimum wage).

The goal?

NYC wants to study the industry’s impact.

Supporters say:

  1. Traffic congestion is worsening.
  2. Taxi medallion holders are suffering from the decreasing value of licenses.
  3. Rules aren’t as strict for ride-hailing drivers as taxi drivers = market imbalances.

Protestors say:

  1. People find transportation methods, such as the subway, less reliable.
  2. Prices will increase.
  3. Trip volumes are increasing = supply should satisfy demand.

Obviously, ride-sharing companies are upset. But Uber’s really upset. On Friday, they filed a lawsuit against NYC to overturn the law in fear the city will ultimately make the law permanent due to de Blasio’s recent comments. Uber accuses the law as a “ban first, study later” approach.

As TechCrunch puts it, “It’s a chicken-and-egg situation. You can’t expect a better subway system if nobody is interested in taking the subway anymore. And you can’t expect customers to rely on the subway if there hasn’t been enough investment to make it reliable.”

Image Source: Margaritaville Blog

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Uber Sues NYC To Overturn Driver Cap Law

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