Uber Technologies Inc. is taking New York City to court over the government’s decision to cap the number of ride-hailing drivers allowed on the streets.
Officials partly justified restraints on for-hire drivers as a way to reduce congestion. In the suit expected to be filed yesterday, Uber argues the city doesn’t have the evidence to prove that claim. The company also alleges that Mayor Bill de Blasio is treating the business unfairly. According to a copy of the complaint provided by Uber, the company said the mayor doesn’t intend to review ongoing congestion studies on their merits and instead has already committed to perpetually cap the number of drivers in the city.
Uber also argues that New York City is superseding the state’s authority to set the number of professional drivers on the road. Constraints on the industry “will have a disproportionate impact on residents outside of Manhattan who have long been underserved by yellow taxis and mass transit,” Uber writes in the complaint. The complaint filed in New York state court in Manhattan couldn’t immediately be verified in court records.
Carving out a path for expansion in one of the world’s biggest transportation markets is important for Uber. Earlier Friday, the company reported an adjusted loss of $1.8 billion for 2018 and a slowdown in quarterly sales growth. The company is targeting an initial public offering by the middle of the year.
- Uber suing New York City over rule limiting number of drivers; loses $1.8 billion over 2018.