NEW YORK (Reuters) – A Manhattan choose has dismissed Uber Applied sciences Inc’s lawsuit difficult a New York Metropolis legislation limiting the variety of licenses for ride-hailing providers, the primary such cap by a serious American metropolis.
FILE PHOTO: A display screen shows the corporate brand for Uber Applied sciences Inc. on the day of it is IPO on the New York Inventory Alternate (NYSE) in New York, U.S., Could 10, 2019. REUTERS/Brendan McDermid/File Photograph
In a call made public on Friday, New York State Supreme Court docket Justice Lyle Frank rejected Uber’s argument that town wrongly gave its Taxi and Limousine Fee energy to implement the cap.
Frank was additionally unconvinced that the cap, a part of Native Regulation 147, would impede state efforts to cut back site visitors congestion by way of “congestion pricing” on autos getting into high-traffic areas of Manhattan.
“It will seem that LL 147, fairly than being in battle with the congestion pricing legislation, actually seems to enrich it,” Frank wrote. His determination is dated Oct. 31.
“We’re disenchanted that the TLC’s cap that punishes drivers who’re compelled to hire autos will stay in impact,” Uber stated in a press release.
Nicholas Paolucci, a spokesman for town’s legislation division, stated in an e-mail: “Hardworking for-hire car drivers and everybody else impacted by our congested roads needs to be happy with this court docket ruling.”
The August 2018 legislation was meant to offer New York Metropolis higher oversight of ride-hailing firms resembling Uber and Lyft Inc.
It included a one-year freeze on new licenses to for-hire autos, which was later prolonged by way of August 2020, and in addition set minimal pay requirements for drivers.
The case is separate from Uber’s Sept. 20 problem to a New York Metropolis “cruising cap” rule limiting how a lot time its drivers may spend with out passengers in Manhattan south of 96th Avenue.
Primarily based in San Francisco, Uber has drawn criticism from many cities that its autos improve congestion, and commandeer enterprise from taxis.
The worth of medallions, that are permits wanted to function yellow taxis in New York Metropolis and are distinct from ride-hailing licenses, has plunged as Uber and Lyft gained reputation.
“This cover has been life saving & is the idea for any group of drivers – Uber or yellow cab – to come back out of poverty & instability,” Bhairavi Desai, govt director of the New York Taxi Employees Alliance, stated on Twitter.
The case is ZEHN-NY LLC et al v Metropolis of New York et al, New York State Supreme Court docket, New York County, No. 151730/2019.
Reporting by Jonathan Stempel in New York; Enhancing by Howard Goller