The Taxi and Limousine Commission has approved a plan to let livery cars pick up passengers on the street outside the heart of Manhattan.
The rules allow 18,000 livery drivers to buy permits to collect people on curbs in upper Manhattan and the four other boroughs.
Advocates say that benefits millions of people in areas where yellow cabs aren't prevalent.
But owners of the city's signature yellow cabs have sued to stop it. The Metropolitan Taxicab Board of Trade says the plan is unfair to yellow cab owners who paid hefty fees for what has been an exclusive citywide right.
City lawyers say they're confident the plan meets legal requirements.
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