Uber sues New York City over new licence cap imposed on the ride-hailing app

Uber has sued New York City over the City Council's vote to impose a year-long cap on new licenses for ride-hailing vehicles.

According to a report in CBNC, Uber's lawsuit will attempt to reverse the cap allowing new licenses to be issued again. The cap, which was voted in a by the city’s council, was designed to limit the number of vehicles on the road in an attempt to reduce congestion and help struggling taxi drivers, who say their livelihoods were hurt by the huge influx of ride-haling drivers in the city.

The decision also allowed the state of New York to set a minimum hourly rate for drivers. Uber's lawsuit says: "Rather than rely on alternatives supported by transportation experts and economists, the City chose to significantly restrict service, growth and competition by the for-hire vehicle industry, which will have a disproportionate impact on residents outside of Manhattan who have long been underserved by yellow taxis and mass transit."

The New York Taxi Workers Alliances spoke in favour of the city's decision to cap ride-hailing licenses, citing the economic crisis faced by taxi drivers. Eight New York City taxi drivers have now committed suicide because of the crisis Uber created, according to the NYTWA.

They say that's why Uber drivers and yellow cab drivers from across the city united to win the historic cap on for-hire-vehicles.

Uber has said that the state's vision for congestion pricing is the only evidence-based plan to reduce traffic and fund mass transit.