(Bloomberg) -- Uber Technologies Inc. scored a legal victory over the New York City Taxi and Limousine Commission after a state court judge annulled a new rule limiting the “cruising” time of car-hire vehicles that was intended to reduce traffic congestion.
Uber sued in August to overturn a new regulation, which included a 31% cap on the total traveling hours car-hire vehicles spent in the core area of Manhattan without passengers. The company said the rule imposed unfair limits on ride-sharing services.
In his decision Monday, Justice Lyle Frank in New York called the “cruising” regulation “arbitrary and capricious.” Frank said it was “problematic” that the Taxi and Limousine Commission counted time spent driving to pick up a fare that has already been ordered.
The real problem, the judge said, appears to be the time that drivers spend double parked waiting for another fare. Frank's decision also suggested the rule might cause drivers to avoid picking up fares further from the core of the city, because the time driving to the pick-up location would count against them.
A commission spokesman had no immediate comment when reached by phone.
Read More: Uber Sues NYC Taxi Authority Over ‘Arbitrary' Congestion Rule
Uber's lawsuit has had mixed success. In October, the judge rejected the company's complaint about a provision of the regulation that temporarily capped the number of new licenses for for-hire vehicles.
To contact the reporter on this story: Erik Larson in New York at elarson4@bloomberg.net
To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Steve Stroth
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