Judge Dismisses New York City's Cruising Cap Rule For Uber, Lyft

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Judge Dismisses New York City's Cruising Cap Rule For Uber, Lyft

A New York State judge dismissed a New York City rule that would limit transportation network companies' drivers could cruise without passengers. The rule was aimed at reducing congestion and approved by the New York City Taxi and Limousine Commission. Uber and Lyft filed separate lawsuits against the rule in September of 2019.

Key findings

"In his decision, Judge Lyle Frank of the Supreme Court of State of New York reportedly called the city's cruising cap rule "arbitrary and capricious." The judge said that the city's calculation of the cruising rate should not include the traveling time spent by a driver to pick up a passenger who has requested a ride. The judge's decision marks a win for Uber and Lyft."

"New York City Mayor Bill de Blasio said in August that a rule would be instituted restricting drivers of ride-hailing companies from spending only 31 percent of their time cruising in Manhattan's core areas without passengers, compared to the 41 percent cruising rate in 2018. Under the new rule, the cruising cap for ride-hailing services would have fallen to 36 percent during the peak hours in February 2020 and further to 31 percent in August 2020."

"Following the judge's decision, New York City is said to be reviewing its legal options, including an appeal."

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