New York’s Supreme Court has rejected Uber’s bid to overturn the cap on the number of ride-hailing vehicles allowed to cruise the city’s streets without passengers.
Uber previously argued that the law, which was implemented in August 2018 as a way to ease traffic congestion, represented an overstep of the city’s authority. The ride-hailing giant contended that placing limitations on cruising time would undermine its entire business model and asked for the law to be voided.
However, a judge has found that the city acted within its rights in imposing the law, which also halted the issuance of new licenses to drivers for 12 months.
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Uber disappointed by decision
A spokesperson for Uber said the company is “disappointed that the [city Taxi and Limousine Commission’s] cap that punishes drivers who are forced to rent vehicles will remain in effect,” reports Consumer Reports.
At this time, the company hasn’t decided whether it will appeal the ruling.
Taxi drivers, who have been increasingly burdened by debt and thus have supported measures like the cap on for-hire vehicles, celebrated the ruling.
“This cap has been life saving and the basis for any group of drivers — Uber or yellow cab — to come out of poverty and instability,” New York Taxi Workers Alliance director Bhairavi Desai said in a statement. “Uber and Lyft have saturated the streets on drivers’ backs. They lost on this issue and need to stop wasting everyone’s time and money fighting it.”