Lyft Inc, following its rival Uber's move, has sued New York City seeking t...
FILE PHOTO: A Lyft sticker is seen in a car windscreen in Los Angeles, California, U.S., March 20, 2019. REUTERS/Lucy Nicholson/File Photo
The lawsuit, filed by the San Francisco-based ride-hail company on Friday, argues that the cruising rule is arbitrary and threatens to shift business away from ride-hailing companies like Lyft in favor of taxis. 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.
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.
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