Uber Files Lawsuit to Stop Fare Raise in NYC

By Matis Glenn

Rideshare giant Uber filed a lawsuit against New York City on Friday, in an effort to prevent the city’s Taxi and Limousine Commission from raising fares and pay rates, reports WINS News.

Last month, the TLC passed its first rate hike since 2012, which would affect both yellow cab and app-based car services, amid protests from TLC drivers who say that they aren’t making enough due to inflation; yellow taxi drivers decried mounting medallion debt, as well.

Mandatory driver pay rates for Uber, Lyft, and other app-based car services are set to increase by 7 percent per minute, and 24 percent per mile.

Base fares for yellow cabs will increase from $2.50 to $3.00, and every meter unit – 1/5 of a mile – will go from $.50 to $.70.

The changes are set to go into effect December 19.

ABC News estimates that an average trip will cost 23 percent more than current costs, and that overall, taxi drivers will see a 33 percent increase in pay. Some trips will have a flat increase, including Kennedy Airport, which will cost $70, up from $52.

Uber says in its lawsuit that that the fare hikes will “irreparably damage Uber’s reputation,” and “risk permanent loss of business and customers.”

TLC Commissioner David Do feels confident that the raises are legal.

“New York City leads the nation in protecting drivers, and this important rule reflects that reality,” Do said in an interview with Bloomberg News. “We are confident that we are well within our legal authority in implementing this important rule, and we are vigorously fighting this lawsuit.”