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Uber's lawsuit against New York City is dismissed



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Angela Lang / CNET

Uber's lawsuit to prevent New York City from capturing the number of vehicles allowed to cruise city streets has been rejected. The decision, published Oct. 31

and reported earlier Friday by The Verge, was made in the Supreme Court of the State of New York, New York County.

The City Council first passed a law in August 2018 that limited the number of permitted vehicles in New York City, and extended it indefinitely in June. Mayor Bill de Blasio at the time said it was an effort to fight overload and provide higher wages.

The new cap also put a limit on how many empty vehicles can "cruise" on the streets of Manhattan. Vehicles can now be empty in the Manhattan Core below 96th Street just 31% of the time they are on the road. It applies between 18:00 and 11:00. on weekdays and at 8 pm and 3 pm 11 on weekends.

Cruising must be reduced to 36% by February 2020 and hit 31% by August 2020, with the rule to be enforced with "severe penalties," including suspending or revoking a company's license to operate in NYC. [19659005] Uber sued New York City in September, saying that the cruise deck threatens its business model, with Lyft according to in October.

"Driver flexibility is already threatened by Mayor de Blasio's regulations, and the cruise cap will only make it worse," said a Uber spokesman when the lawsuit was announced. "This arbitrary rule used a flawed economic model, did not take into account how drivers are affected by previous regulations."

New York City already secured drivers an amount per trip as the net $ 17.22 per hour minimum. According to de Blasio, drivers have earned an additional $ 172 million between February 1 and May 19, 2019, since this rule came into force.

Uber and Lyft did not immediately respond to a request for comment.


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