NEW YORK, June 11 (Reuters) – Lyft joined \u2060Uber \u2060Technologies in suing New York \u2060City to block a new law they said would force \u200bthem to keep bad drivers who threaten public and passenger safety on their platforms.<\/p>\n
The Lyft lawsuit \u200cwas filed late Wednesday in \u200cManhattan federal court, 24 hours after Uber sued.<\/p>\n
Both companies are challenging\u00a0Local Law 52 of \u20602026, which \u2060generally prevents large ride-sharing companies from swiftly dismissing drivers absent a “bona \u200bfide economic reason” or “just cause.”<\/p>\n
The companies said the law targeting “wrongful deactivations” violated their due process and free speech rights under the U.S. Constitution.<\/p>\n
They also said the law threatened irreparable harm by undermining \u200btheir reputation and goodwill while keeping unsafe drivers, including those accused of sexual misconduct, \u2060on \u2060the road.<\/p>\n
Lyft called the \u2060law “hazardous” and \u200bUber called it “reckless.” The law would take effect on July 28, after the City Council \u200bin January overwhelmingly overrode \u2060former Mayor Eric Adams’ veto.<\/p>\n
A spokesman for New York City’s law department said on Thursday it is reviewing both cases.<\/p>\n
Uber and Lyft, both based in San Francisco, have faced criticism that they don’t do enough to stop drivers who abuse passengers or commit fraud.<\/p>\n
As \u2060of June 1, Uber faced 3,571 lawsuits and Lyft faced 54 lawsuits in \u2060nationwide litigation in San Francisco federal court accusing drivers of sexual misconduct.<\/p>\n
In challenging the New York City law, Lyft and Uber objected to requirements that they give drivers 14 days’ notice before letting them go, and potentially rehire drivers deactivated since 2019 solely because they did not receive such notice.<\/p>\n
They also objected on privacy grounds to requiring passengers to detail alleged misconduct to accused drivers, and objected to a heightened burden of proof when defending against drivers \u2060who challenge their deactivations in court or arbitration.<\/p>\n
City Council Speaker Julie Menin and Council Member Shekar Krishnan, the law’s main sponsor, said they looked forward to the law being upheld in court, and that the council will “fight to ensure \u200ball app-based drivers have basic due process protections.”<\/p>\n
(Reporting by Jonathan Stempel \u200bin New York; Editing by Mark Porter)<\/p>\n
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