CNBC Reported Friday that Uber has decided to sue New York City over the City Council's vote last August to impose a cap on new licenses for ride-hailing vehicles.
Uber's lawyers are seeking to reverse the cap and allow new licenses again as their numbers are falling with drivers leaving the industry.
The New York cap was designed to help cut back on the number of vehicles, to reduce congestion and also assist the licensed taxi drivers, who say their livelihoods were drastically affected, after their trade had been overwhelmed by ride-haling drivers in the city.
The City Council had also set a minimum hourly rate for drivers, which Uber's rival Lyft sued to reverse earlier this year.
"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," Uber's lawsuit says.
In a statement to CNBC, the New York Taxi Workers Alliances (NYTWA) defended the city's decision to cap the number of ride-hailing licenses, citing the economic crisis faced by taxi drivers.
"Eight drivers have now died by suicide because of the crisis Uber created," the statement says. "That's why Uber drivers and yellow cab drivers from across the city have united to win the historic cap on for-hire vehicles, to put an end to the financial despair, debt, and poverty that is literally killing our brothers."
Uber said in a statement that it supports "the state's vision for congestion pricing, the only evidence-based plan to reduce traffic and fund mass transit."
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