Uber Technologies (UBER) and Lyft (LYFT) were granted a preliminary injunction by US District Judge Gregory Woods on Wednesday, blocking a recently enacted New York City law protecting ride-share drivers from "wrongful deactivations."
Judge Woods said that each company's agreements with drivers conferred broad authority over platform access, including the right to deactivate a driver without advance notice, which Uber and Lyft use to police the safety of their platforms and their passengers, according to court documents.
While the New York City Council law takes into account the hardships that wrongful deactivation imposes on drivers, it does not consider the law's effects on the broader citizenry of the city, whose safety depends in part on swift deactivation of drivers accused of assault, fraud or dangerous conduct, the court order said.
A Lyft spokesman told MT Newswires in an email that the company was "pleased the court recognized the serious safety concerns at the heart of this challenge. Lyft's ability to protect riders is a top priority. We now look forward to making our full case."
Uber did not immediately respond to a request for comment.
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