Uber Takes Legal Action To Overturn New York City’s Limit On New Drivers

Uber filed a court case to overturn the first-in-the-nation law by New York City limiting the number of ride-hail drivers that work on the city roads. The rule, which went live in August 2018, paused the approval of new licenses to drivers for a year. But Uber needs the rule overturned for fear that the city will eventually make the rule permanent.

The rule was fraction of a sweeping legislative deal passed by the Council of New York City in previous summer to offer regulators more management over e-hail firms. Apart from the cap, the city council also sanctioned a minimum pay standard amongst drivers, with the objective of lowering how much time vacant cars spend on the street. Supporters stated that the cap is required to study the affect of app-supported cars on worsening traffic jam in the area. But the cap amounts to a “prohibition first, study later” method, Uber claims.

On a related note, Uber drivers in the US might be out of luck pursuing class action court cases that may force the firm to consider them as workers. They may, on the other hand, get something for their trouble. The media earlier learned that Uber has provided a tentative negotiation to those drivers who have pursued separate arbitration lawsuits over their employee status. Uber will pay them 11 Cents for each mile they have driven at the time of these trips (comprising for services such as Uber Eats). On the other hand, drivers will also have to drop all employee misclassification claims in opposition to Uber.

Whether or not the negotiation goes through relies on sufficient arbitration-related drivers inking the contract. Uber has refused to comment, and a law company representing drivers had not answer media questions. It does, on the other hand, have every reason to provide a settlement swiftly.