Lyft follows Uber in suing NYC over cruising time caps

FILE PHOTO: A Lyft sticker is seen in a automobile windscreen in Los Angeles, California, U.S., March 20, 2019. REUTERS/Lucy Nicholson/File Picture

(Reuters) – Lyft Inc, following its rival Uber’s transfer, has sued New York Metropolis searching for to nullify a brand new rule limiting the time its drivers are allowed to spend cruising in Manhattan with out passengers, the corporate stated on Saturday.

The lawsuit, filed by the San Francisco-based ride-hail firm on Friday, argues that the cruising rule is bigoted and threatens to shift enterprise away from ride-hailing corporations like Lyft in favor of taxis.

“This rule just isn’t a severe try to deal with congestion, and would harm riders and drivers in New York,” Lyft spokesman Campbell Matthews stated in a press release to Reuters.

The “cruising cap” rule, carried out by town’s Taxi and Limousine Fee (TLC), units a 31% restrict on how a lot time drivers of app-based autos could drive with out passengers in Manhattan south of 96th Road, which means they must have fares at the very least 69% of driving time.

“We’ll vigorously defend towards this swimsuit, and we are going to proceed to battle for safer, much less congested streets and for drivers’ rights,” TLC spokesman Allan Fromberg stated in a press release, however talked about that the company has not been served with the swimsuit but.

The rule, together with a number of others launched final 12 months, is geared toward lowering congestion in Manhattan, the place ride-share autos make up near a 3rd of peak time site visitors, in line with the TLC.

Uber contested the rule in September together with one other rule banning issuance of recent licenses to for-hire autos by means of August 2020.

Uber and Lyft disconnected drivers from their apps at instances of gradual demand this 12 months in an effort to adjust to town regulation.

Each corporations oppose the brand new guidelines, saying they are going to stop drivers from incomes cash and deprive low-income New Yorkers of trip companies in distant areas the place common taxis don’t journey regularly. Town rejects that declare.

Reporting by Akshay Balan and Mekhla Raina in Bengaluru; Modifying by David Gregorio

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