New York City’s Taxi and Limousine Commission (TLC) has set a 31% limit on how much time drivers of app-based vehicles can drive without passengers in Manhattan south of 96th Street.
In a development that mirrors Uber’s move to sue the New York City state in order to nullify a new rule which limits the time its drivers are allowed to spend cruising in Manhattan without passengers, Lyft Inc stated, it has also filed a lawsuit arguing that this rule is not only arbitrary but also threatens to shift business away from ride-hailing companies like itself in favour of taxis.
“This rule is not a serious attempt to address congestion, and would hurt riders and drivers in New York,” said Lyft spokesman Campbell Matthews in a statement.
The “cruising cap” rule, implemented by the city’s Taxi and Limousine Commission (TLC), sets a 31% limit on how much time drivers of app-based vehicles can drive without passengers in Manhattan south of 96th Street.
“We will vigorously defend against this suit, and we will continue to fight for safer, less congested streets and for drivers’ rights,” said TLC’s spokesman Allan Fromberg in a statement while mentioning that the agency is yet to be served with the lawsuit.
The rule, introduced with several others last year, is aimed at reducing congestion in Manhattan, where ride-share vehicles make up close to a third of peak time traffic, said TLC.
In order to comply with the city’s new regulations, both Uber and Lyft disconnect drivers from their apps when there had been a slowdown in demand this year.
Both have opposed the new rules arguing, they will prevent drivers from earning money and deprive low-income New Yorkers of ride services in remote areas where regular taxis do not travel frequently.
New York City has rejected this claim.