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Lyft Joins Uber in Suing NYC Over Cruising Cap

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By Howard M. Riell

Lyft is suing New York City over its cruising cap.

It wasn’t even a month ago that competitor Uber filed a lawsuit because of regs that place a lid on cruising times.

“The No. 2 ride-hail company filed suit Friday evening, asking that the Taxi and Limousine Commission’s “unreasonable, irrational and highly damaging cruising rule” be vacated and annulled,” Crain’s New York Business reported. “The rule, passed in August with the aim of reducing congestion in Manhattan’s core, requires the app-based services to reduce cruising-empty time below 96th Street to 36% by February and 31% by August. App-based vehicles currently drive empty 41% of the time on average, according to the city.”

The lawsuit, which was filed in New York State Supreme Court in Manhattan, alleges that the rule itself is based on “outdated, unreliable data” from the Taxi and Limousine Commission. It also claims that the research failed to consider whether or not the reductions were actually achievable. “The rule also does not extend to taxis despite the role they play in congestion, the suit said, and does not take into account the impact it will have on underserved communities,” Crain’s added.

The “cruising cap” rule, implemented by the city’s Taxi and Limousine Commission, sets a 31% limit on how much time drivers of app-based vehicles may drive without passengers in Manhattan south of 96th Street, meaning they would have to have fares at least 69% of driving time.

“This rule is not a serious attempt to address congestion, and would hurt riders and drivers in New York,” Lyft spokesman Campbell Matthews said in a statement to Reuters.

“We will vigorously defend against this suit, and we will continue to fight for safer, less congested streets and for drivers’ rights,” TLC spokesman Allan Fromberg said in a statement, but mentioned that the agency has not been served with the suit yet.

“The rule, along with several others introduced last year, is aimed at reducing congestion in Manhattan, where ride-share vehicles make up close to a third of peak time traffic, according to the TLC,” Reuters reported.

The company remains optimistic. “Lyft’s second quarter was marked by strong execution and important advances in our product and platform. This translated to record revenue driven by better than expected Active Rider growth and Revenue per Active Rider monetization,” said Logan Green, co-founder and chief executive officer of Lyft in a statement. “We remain focused on reshaping transportation and we are pleased with the continued improvement in market conditions. This environment along with our execution is translating to strong revenue growth and sales and marketing efficiencies. As a result of this positive momentum, we anticipate 2019 losses to be better than previously expected and we are pleased to have updated our outlook.”

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