• General
  • February 15, 2019
  • 7 minutes read

Uber Sues NYC Over Cap On Number Of Allowed Drivers

Uber CEO Dara Khosrowshahi image : World Travel & Tourism Council Uber is taking New York City to court over…

Uber CEO Dara Khosrowshahi

image : World Travel & Tourism Council

Uber is taking New York City to court over a decision to limit the number of ride-hailing drivers allowed on the streets. As reported by Bloomberg, Uber is expected to file the suit this Friday, arguing that the city doesn’t possess enough evidence to prove a claim of limiting the number of ride-hailing drivers as a way of lessening congestion.

The San Francisco headquartered company is also alleging that New York Mayor Bill de Blasio is treating the business unfairly, stating that the mayor for five years running, doesn’t intend to take a look at ongoing congestion studies on their merits but has instead already bind to constantly limit the number of drivers in the city.

New York Mayor Bill de Blasio

image : Flickr user Diana Robinson

Uber also argues that the City of New York is overriding the state’s authority to place a limit on the number of professional drivers allowed on the road. It says a limitation “will have a disproportionate impact on residents outside of Manhattan who have long been underserved by yellow taxis and mass transit,”.

Uber recently raised prices for New York City rides after a new minimum wage law put into effect, that guarantees pay of at least $17.22 per hour after expenses for drivers in the city, so it’s not the first time the company will be clashing with the city. Although Uber didn’t sue in regards to the minimum wage law that led to a fee increase, competitors Lyft and Juno filed lawsuits attempting to block the ruling, with Lyft arguing that it gives “an automatic and perpetual advantage” to Uber, the ride-hailing industry leader.

Uber chief operating officer (COO) Barney Harford

image : World Travel & Tourism Council

Uber – which is heading for an IPO – is shaping out an avenue for expansion in – NYC – what counts as one of the world’s largest transportation markets. The company says a limit denies workers of being able to get rewards of the recent minimum pay guarantee recently implemented by the city. It claims the city’s subway system “has long been over capacity, underfunded and poorly maintained, and its defects disproportionately affect lower-income neighborhoods and areas with substantial minority populations.”

Uber also recently posted its financial results ahead of a public offering, recording $11.3 billion revenue on $50 billion in gross bookings last year, but with losses of $1.8 billion for the period.

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