Judge Rules on Fate of Online Drivers Who Could Be Suddenly Dismissed

Uber Technologies once operated in Indonesia, offering online taxi and motorcycle taxi services. However, Uber was forced to exit the Southeast Asian market, including Indonesia, in April 2018. Uber subsequently handed over all its business operations in Southeast Asia to Grab. Since then, Uber has focused on developing its business in key markets such as the United States and several European countries. Uber has also rapidly adapted to electric-based taxi services and driverless automatic taxis, or robotaxis. However, Uber frequently faces legal problems related to its innovations and business decisions. Some time ago, Uber faced a legal case with the New York City local government. Together with its competitor, Lyft, Uber was required to provide 14 days’ notice before deactivating online drivers from their services. Exceptions were granted if the online driver committed a serious violation. The regulation from the New York City government was enacted in January 2026. The rule also allowed for the potential reinstatement of online drivers who had been deactivated since 2019, solely because they did not receive such notice. In a lawsuit filed separately in June 2026, Uber and Lyft argued that the law violated their rights to fair legal procedures and free speech as guaranteed by the US Constitution. They claimed the law risked damaging their reputation and goodwill, while still allowing problematic online drivers, including those accused of sexual assault, to operate on the roads. After proceedings, a federal judge ultimately ruled that New York City could not prohibit Uber and Lyft from deactivating their driver partners from the app without notice. The new ruling declared the city’s regulation unconstitutional. US District Judge Gregory Woods in Manhattan stated in a written ruling on Tuesday that the city’s law, passed earlier this year, only benefited a small group of drivers while disrupting the ride-hailing companies’ rights to oversee the safety of their platforms. Judge Woods wrote that Uber and Lyft successfully demonstrated that the law protected a small group of drivers and did not advance the broader social or economic interests required by the US Constitution to permit such a significant infringement on their contracts. The judge issued a temporary order blocking New York City from imposing penalties on Uber and Lyft, which were scheduled to take effect on 28 July, pending the outcome of the companies’ consolidated lawsuit. Lyft said in a statement that it was pleased the court recognised the serious safety concerns at the heart of the challenge. Uber spokesperson Josh Gold separately said the opinion affirmed that fairness for drivers and safety for riders can and must go hand in hand. The New York City Law Department did not immediately respond to a request for comment.