Lyft, Uber sue New York City to block driver retention law

Lyft has joined Uber in suing New York City to block a new law that the ride-sharing companies claim would compromise public and passenger safety. The lawsuit, filed late Wednesday in Manhattan federal court, challenges Local Law 52 of 2026, which generally prevents large ride-sharing platforms from quickly terminating drivers without a "bona fide economic reason" or "just cause."

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Lyft joined Uber Technologies in suing New York City to block a new law they said would force them to keep bad drivers who threaten public and passenger safety on their platforms.

Both companies assert that the law, designed to prevent "wrongful deactivations," infringes upon their due process and free speech rights guaranteed by the U.S. Constitution. They argue that the legislation poses an "irreparable harm" by potentially damaging their reputations and forcing them to keep unsafe drivers, including those accused of sexual misconduct, on their platforms.

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The companies said the law targeting "wrongful deactivations" violated their due process and free speech rights under the U.S. Constitution.

Lyft described the law as "hazardous," while Uber labeled it "reckless." The legislation is set to take effect on July 28, following an overwhelming override of former Mayor Eric Adams' veto by the City Council in January. A spokesperson for the New York City law department stated that the city is currently reviewing both legal challenges.

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Lyft called the law "hazardous" and Uber called it "reckless."

Ride-sharing giants Uber and Lyft have faced persistent criticism regarding their handling of passenger abuse and fraud allegations. As of June 1, Uber was involved in 3,571 lawsuits nationwide, and Lyft in 54, primarily in San Francisco federal court, accusing drivers of sexual misconduct. The companies object to the law's requirement for 14 days' notice before dismissal and the potential rehiring of drivers deactivated since 2019 without such notice. They also oppose privacy concerns related to passengers detailing alleged misconduct to accused drivers and a higher burden of proof when defending against driver deactivation challenges in court.

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We will fight to ensure all app-based drivers have basic due process protections.