Obviously, NYC taxi cab owners and lenders have seen a sharp decline in their business as Uber does offer more cleaner and newer vehicles for riders to travel in and the app allows for slim to none chance for discrimination.
Now Uber is facing a lawsuit because apparently, they are a threat to a free market.
Reports CNBC via Reuters:
Taxi owners and lenders on Tuesday sued New York City and its Taxi and Limousine Commission, saying the proliferation of the popular ride-sharing business Uber was destroying their businesses and threatening their livelihoods.
The lawsuit filed in Manhattan federal court accused the defendants of violating yellow cab drivers’ exclusive right to pick up passengers on the street by letting Uber drivers who face fewer regulatory burdens pick up millions of passengers who use smartphones to hail rides.
According to the complaint, the number of Uber rides in the “core” of Manhattan increased by 3.82 million from April to June 2015 compared with a year earlier, while medallion cab pickups fell by 3.83 million.
They said this had driven down the value of medallions, which yellow cab drivers need to operate, by 40 percent from a peak exceeding $1 million and caused more defaults.
Uber’s rise also contributed to the July 22 bankruptcy of 22 companies run by taxi magnate Evgeny Freidman, and the state’s Sept. 18 seizure of Montauk Credit Union, which specialized in medallion loans, the complaint said.
“Defendants’ deliberate evisceration of medallion taxicab hail exclusivity, and their ongoing arbitrary, disparate regulatory treatment of the medallion taxicab industry, has and continues to inflict catastrophic harm on this once iconic industry, and the tens of thousands of hardworking men and women that depend on it for their livelihood,” the complaint said.
It sounds like NYC taxi cab companies either need to adapt or close down shop.
Photo: Alberto Reyes/WENN.com