Uber Sues Taxi & Limo Commission in an Attempt to Put a Stop to Rate Hikes

Mindy Cohn

After a rate increase for taxi and limousine drivers was approved last month, Uber sued the New York City Taxi & Limousine Commission on Friday to block the increase.

Uber's claim is that the 7% increase in per-minute rates and 16% per-mile increase approved last month, is a "dramatic, unprecedented, and unsupported hikes". The petition filed in Manhattan Supreme Court suggests that the increased rates should not be allowed to go into effect on December 19.

Given that Uber has already raised their rates 48% since 2019, the company claims that the rate hikes would force it to pay an additional $21-23 million per month on compensation or raise New York City fares by 10% on average. The claim is that this would cause "immediate and irreparable harm" to both the company's reputation and bottom line.

"Such a significant fare hike, right before the holidays, would irreparably damage Uber's reputation, impair goodwill, and risk permanent loss of business and customers," the company wrote in its petition.

 Drivers Unions were not pleased with Uber's lawsuit as they argue the price hike is necessary because inflation is driving up their cost of business and living.