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Uber (UBER) is following fellow ride-sharing company Lyft in complying with New York City’s regulation aimed at decongesting the streets of Manhattan by limiting its drivers’ access to the app during downtime, reports said Tuesday.
Reports said the new policy will reduce by up to 10% the time that drivers are cruising the streets, which is currently 41% of the time. It will also peg the minimum fare at the travel time for transporting passengers.
However, just like Lyft, Uber is also reportedly contesting the policy, saying there is no evidence it could help ease the heavy traffic.
“Time and again we’ve seen Mayor (Bill) de Blasio’s TLC pass arbitrary and politically driven rules that have unintended consequences for drivers and riders,” Uber reportedly said.
Uber shares edged up 0.2% in low volume during pre-market trade Tuesday. For those looking to escape the New York congestion, here is a great escape idea to Massachusetts.