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The lawsuit filed in Manhattan federal court accuses the defendants of violating yellow cab drivers' exclusive right to pick up passengers on the street by letting Uber drivers pick up millions of passengers who use smartphones to hail rides.
Taxi drivers will retain exclusive rights to pick up passengers from taxi ranks and by hailing.
This will effectively restore black cabs' exclusive right to pick up passengers off the street at ruinous cost.
Yellow taxicabs have had an exclusive right to pick up street hails since the city's medallion system began in the Great Depression.
The company manager, Sebastian Olson, noted that the new law ended yellow cabs' exclusive right to pick up people on the street and said that he feared this was just the beginning of an encroachment by livery cabs.
The lawsuit argues that the new rules violate the rights of yellow taxi medallion owners and drivers paying for the legally protected, "exclusive" right to pick up street hails.
The zones would be created in neighborhoods citywide that are underserved by yellow cabs, except Manhattan below 96th Street and airports where yellow taxis have exclusive rights to pick up passengers, Mr. Linares said.
The complaint filed in federal court alleges that the city violated yellow cab drivers' exclusive right to pick up passengers on the street by allowing Uber drivers to get passengers via the phone app.
"Basically, the airport is our business," said Patricia Stephens, president of Stita, the Seattle owner-operated cab company that has an exclusive contract to pick up passengers at the Seattle-Tacoma International Airport, to which the company pays $2 per trip.
