Uber Sues NYC Taxi Authority Over ‘Arbitrary’ Congestion Rule
Pedestrians pass in front of signage displayed outside the Uber Technologies Inc. headquarters in San Francisco, California, U.S. (Photographer: David Paul Morris/Bloomberg)

Uber Sues NYC Taxi Authority Over ‘Arbitrary’ Congestion Rule

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(Bloomberg) -- Uber Technologies Inc. sued the New York City Taxi and Limousine Commission over a new regulation intended to reduce traffic congestion, saying the rule is arbitrary and can’t be achieved.

The suit, which seeks to nullify the rule passed Aug. 7, was filed in New York state court in Manhattan. One part of the new regulation places a 31% cap on the amount of time that for-hire vehicles can spend on the road without passengers, while another provision bars the issuance of more for-hire vehicle licenses until August 2020.

“While reducing congestion in Manhattan is an important goal -- and one Uber has publicly and vocally supported -- the August 2019 rule is the product of a rushed and unlawful process, including reliance on flawed and arbitrary economic modeling,” Uber said in the filing.

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