In a victory for the ride-hailing industry, a state Supreme Court judge has struck down an upcoming New York City rule that would have restricted the amount of time app-based drivers for companies like Uber and Lyft can spend cruising without passengers below 96th Street in Manhattan.
Judge Lyle Frank wrote in his ruling on Monday that the city's plan, which Mayor Bill de Blasio said would reduce congestion in heavily trafficked areas of Manhattan, are "arbitrary and capricious." Amid New York City's taxi industry crisis, De Blasio has vowed to crack down on app-based drivers working mostly for Uber and Lyft, installing a cap on the number of app-based cars in the city at about 85,000. Yellow taxis, by comparison, number around 13,000.
Under the so-called "cruising cap" regulations passed by the Taxi and Limousine Commission in August, ride-hailing drivers would be limited to spending no more than 36 percent of their time driving or waiting without a passenger south of 96th Street starting in February 2020. The cruising rate would then be lowered to 31 percent in August.
In September, Uber filed a lawsuit challenging the rules. Lyft filed its own separate lawsuit, which is also covered under the decision.
Among the problems Judge Frank cited was the city's definition of cruising, which folded in the time in which a driver was on his way to picking up a passenger. He also sided with Uber's argument that the city failed to provide any rationale for why the 31 percent cruising goal was chosen.
“We are pleased that the court recognized that Mayor de Blasio’s cruising cap is arbitrary," Uber spokesman Harry Hartfield told the Daily News. "Uber remains committed to fighting for driver flexibility in the face of politically motivated regulations and to stand up for policies that actually combat congestion.”
In a statement published by Reuters, Lyft said, “We look forward to working with state and city leaders to address New York City’s transportation challenges with the only true solution to congestion: comprehensive congestion pricing."
De Blasio spokeswoman Olivia Lapeyrolerie told the Daily News that the number of app-based vehicles in New York City cause “significant environmental problems.”
“These corporations have flooded our streets with so many cars that more than 40 percent drive around empty and clog our streets," said Lapeyrolerie. “We put these rules in place to protect hardworking drivers and New Yorkers—and we’ll fight to keep them.”
