Uber sues New York City over new driver limit - TravelMole


Uber sues New York City over new driver limit

Sunday, 18 Feb, 2019 0

Uber is taking New York City to court claiming it is unfairly blaming the ride hailing app for the city’s congestion problems.

Last year NYC mayor Bill de Blasio announced a cap on new on-demand drivers to reduce congestion.

Uber contends it is being treated unfairly and the cap was decided without any meaningful data to back up claims on-demand app based ride hailing services are responsible for increased congestion.

"The city made this choice in the absence of any evidence that doing so would meaningfully impact congestion, the problem the city was ostensibly acting to solve," the suit alleges.

The complaint accuses the city of overstepping its authority and it would negatively impact residents in Brooklyn, Queens, the Bronx and Staten Island where hailing a taxi is problematic.

"No legal challenge changes the fact that Uber made congestion on our roads worse and paid their drivers less than a living wage," Mayor de Blasio spokesman Seth Stein said in response.

Many existing Uber drivers are in fact in favor of a cap on new drivers.

Many have teamed up with traditional yellow cab drivers in the New York Taxi Workers Alliance.

They say a constant flood of new drivers in the market is driving salaries lower and lower.

Both sides privately acknowledge the reason behind the driver cap is all about driver wages.

When NYC approved the cap it also approved in principle a minimum wage for app-based drivers.

Meanwhile Uber reported an adjusted loss of $1.8 billion for last year, and says it has experienced a recent slowdown in quarterly sales growth.

However it is still targeting an IPO by the middle of 2019.



Related News Stories:  



 

profileimage

TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



Most Read

Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns

James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel

Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination

Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics

Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy

Bubba O’Keefe on Clarksdale’s Vibrant Music Scene

Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee

Craig Ray and the Expansion of the Blues Trail

Presenting Mississippi’s Cultural Trails with Katie Coats

Robert Terrell: A Journey Through BB King’s Influence

Rochelle Hicks: Celebrating Mississippi’s Musical Legacy

Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
TRAINING & COMPETITION

Our emails to you has bounced travelmole.com Or You can change your email from your profile Setting Section

Your region selection will be saved in your cookie for future visits. Please enable your cookie for TravelMole.com so this dialog box will not come up again.

Price Based Country test mode enabled for testing United States (US). You should do tests on private browsing mode. Browse in private with Firefox, Chrome and Safari