FILE PHOTO: A screen displays the logo of the company is Uber Technologies, Inc. at the date of the initial public OFFERING on the New York Stock Exchange (NYSE) in New York, New York, USA, on 10 May 2019. REUTERS/Brendan McDermid/File Photo
NEW YORK (Reuters) – Uber Technologies Inc has been sued in New York City on Friday, seeking to invalidate a new rule to limit the amount of time drivers spend in congested areas of Manhattan without a passenger, saying the rule is likely to undermine Uber’s ride-sharing model.
The complaint, filed in New York state court in Manhattan, Uber is also being challenged in the city, extending to August 2020, a ban on new permits issued for the hire of the vehicle. The city’s Taxi and Limousine Commission, and was also named as a defendant.
Seth Stein, a spokesman for the Mayor, Bill de Blasio, defended the legislation, saying it would help protect New York against a company that is trying to get the win in the first one.”
The “cruising cap” rule, and represents 31% of the limit on the amount of time drivers are for-hire vehicles that can drive without any passengers in Manhattan south of 96th Street. The goal was to reduce street congestion.
Uber said that while it was “in the public and vocal support” to reduce traffic congestion in midtown Manhattan, the cruise, the cap was based on “faulty and arbitrary” the economic modelling.
“The rule would constitute a threat to the viability of the ridesharing model, as it now exists, is in danger of bringing the benefits of this model is made for both riders and drivers,” Uber said.
Reporting by Jonathan Stempel in New York; Editing by Chris Reeseand Leslie Adler