Uber sues New York City to void 'cruising cap' limit

Uber sues New York City to void 'cruising cap' limit

Uber on Friday filed a lawsuit against New York City that challenges a rule limiting how much time ride-share drivers can spend in crowded parts of Manhattan when they do not have passengers.

In the suit, which names the city’s Taxi and Limousine Commission as a defendant, the ride-share company alleges that the new rules undermine its business model and are an overreach by the government, CNBC reports.

“While reducing congestion in Manhattan is an important goal…. [the rule] is the product of a rushed and unlawful process, including reliance on flawed and arbitrary economic modeling, which was designed to arrive at a predetermined result that is likely not even feasible,” the suit reads, according to the New York Post.

The commission approved new rules last month which require that by August 2020, drivers for major ride-share companies including Uber, Lyft and others can spend no more than 31 percent of their time cruising in the city south of 96th Street without fares, aiming to reduce congestion.

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The rules were authorized by 2018 legislation that was approved by the city council and gained support from Mayor Bill de BlasioBill de BlasioNew York City lawmakers vote to close Rikers Island jail by 2026 2020 Presidential Candidates Cooperate, or else: New York threatens fines to force people to help block immigration enforcement MORE (D).

Uber told CNBC it has “publicly and vocally supported” reducing congestion in Manhattan, but added that the cruising cap was based on “flawed and arbitrary” ideas.

“The rule would threaten the viability of the ridesharing model as it currently exists, jeopardizing the benefits this model has created for riders and drivers,” Uber said.

De Blasio’s spokesman defended the regulations, telling CNBC that New Yorkers would be protected “against a company that seeks to put profit first, and the people and drivers they serve last.”

The complaint was filed New York state court in Manhattan, according to CNBC.