Uber And Lyft Fought The Law And Won In NYC

Ride-hailing companies Uber Technologies Inc UBER and Lyft Inc LYFT walked away victorious in a lawsuit against New York City.

What Happened

Judge Lyle Frank of the Supreme Court of State of New York struck down a law which limits the amount of time Uber and Lyft drivers can ride around Manhattan without passengers, Reuters reported on Monday afternoon. The rule was passed in August and was scheduled to come into law in February, but Frank said a hard limit on cruising time is "arbitrary and capricious."

The mayor's office is looking to appeal the decision. A spokeswoman for the city office told Reuters the rules were put in place months ago to "protect hardworking drivers and New Yorkers -- and we'll fight to keep them."

Why It's Important

Uber and Lyft scored a big victory in New York City, which is their largest U.S. market. New York City also happens to have some of the toughest ride-hailing rules and regulations across the U.S.

"Uber remains committed to fighting for driver flexibility in the face of politically motivated regulations and to stand up for policies that actually combat congestion," Uber told Reuters.

Uber and Lyft continue facing other cumbersome regulations in New York City, including a minimum pay for each of the 80,000 ride-share drivers and a limit on the number of app-based, for-hire cars on the road.

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