On Friday, Uber filed a lawsuit to overturn New York City’s first-in-the-nation law to cap the numbers of ride-hailing drivers which operates on its streets. Six months earlier, New York lawmakers approved the first-of-its-kind cap on the number of cars driving for ride-hail companies in the city. Therefore, the company decided to file a lawsuit against it.
In the lawsuit uber urges that one-year freeze on ride-hail vehicle licenses is totally unnecessary and exceeds the city authority. They also said that there are many ways to tackle the city’s traffic with better policies and tools that don’t target ride-hail companies. In addition to the cap, the New York city council approved minimum pay standards among drivers as they aim to reduce the time of empty cars spent on the road.
According to the lawsuit filed in New York supreme court:
Rather than rely on alternatives supported by transportation experts and economists, the City chose to significantly restrict service, growth and competition by the for-hire vehicle industry, which will have a disproportionate impact on residents outside of Manhattan who have long been underserved by yellow taxis and mass transit. The City made this choice in the absence of any evidence that doing so would meaningfully impact congestion, the problem the City was ostensibly acting to solve.
Supporters claimed that the cap is needed to check the impact of app-based cars on worsening traffic congestion in the city. But Uber said that Cap tends to be a ‘Ban first, study later approach’. Taking a brief outlook Uber and Lyft has remained a source for policymakers, taxi holders, and driver groups. Critics have complained that both the companies have flooded the market with a number of taxis and drivers without having to follow many of the same rules that apply to taxis.
“We agree that fighting congestion is a priority, which is why we support the state’s vision for congestion pricing, the only evidence-based plan to reduce traffic and fund mass transit,” Uber spokesperson Harry Hartfield said in a statement.
Congestion pricing is a policy implemented in cities like London, Milan, and Singapore. The policy is to charge driver fees to enter certain trafficky roads and at a specific time when the roads get busier. Now, New York governor Andrew Cuomo is working on a plan that would raise tolls on all drivers entering midtown and downtown Manhattan.
There is discomfort created between the officials of New York security council over the ride-hailing decision, “No legal challenge changes the fact that Uber made congestion on our roads worse and paid their drivers less than a living wage,” Seth Stein, a spokesperson for New York Mayor Bill de Blasio, said in a statement. “The city’s new laws aim to change that.”