Lyft Inc (LYFT.O), following its rival Uber’s (UBER.N) move, has sued New York City seeking to nullify a new rule limiting the time its drivers are allowed to spend cruising in Manhattan without passengers, the company said on Saturday, reports Trend referring to Reuters.
The lawsuit, filed by the San Francisco-based ride-hail company on Friday, argues that the cruising rule is arbitrary and threatens to shift business away from ride-hailing companies like Lyft in favour of taxis.
“This rule is not a serious attempt to address congestion, and would hurt riders and drivers in New York,” Lyft spokesman Campbell Matthews said in a statement to Reuters.
The “cruising cap” rule, implemented by the city’s Taxi and Limousine Commission (TLC), sets a 31% limit on how much time drivers of app-based vehicles may drive without passengers in Manhattan south of 96th Street, meaning they would have to have fares at least 69% of driving time.
The rule, along with several others introduced last year, is aimed at reducing congestion in Manhattan, where ride-share vehicles make up close to a third of peak time traffic, according to the TLC.
Uber contested the rule in September along with another rule banning the issuance of new licenses to for-hire vehicles through August 2020.
The TLC did not immediately respond to a request for comment on this report.