Uber Sues NYC Over License Cap

Uber filed a lawsuit Friday against New York City over the city's cap on the number of ride-hailing licenses the city allots, The Verge reports.

In August, the New York City Council voted to temporarily suspend issuing new ride-hailing permits for 12 months, as part of an effort by lawmakers to have more regulatory control over e-commerce company. The law also set a minimum pay rate for ride-hailing drivers.

Uber sued reportedly out of fear the cap will be made permanent. Publicly, Mayor Bill de Blasio has said he support keeping the ban in place after the 12 months are completed.

A spokesperson for Uber said the driver cap also blocks new drivers from benefiting from the mandatory wage increase.

In 2015, there were 63,000 vehciles being used in New York City for ride-hailing. That number is now over 100,000.

This article was updated Feb. 28 at 1:30 p.m. to reflect that the cap is on the number of licenses, not drivers.