Livery cab owners sue over taxi 'e-hail' app

NEW YORK -- New York City livery cab owners are fighting new rules that would let riders use their smartphones to "e-hail" yellow cabs.

The Wall Street Journal says livery cab groups filed a lawsuit Thursday. It argues that the regulations would violate a law that bans yellow-cab drivers from prearranging rides with passengers.

The "e-hail" rules were supposed to start Friday, despite the legal challenge. However, the technology isn't ready for installation yet.

The chairman of the Taxi and Limousine Commission says the groups that are suing want to keep the taxi industry and New Yorkers "in the dark ages."

Adds David Yassky: "Next thing, they'll be suing restaurants to go back to wood-burning stoves."

A Manhattan judge will hear arguments on Feb. 28.

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