The compromise plan calls for the city to sell 18, 000 permits allowing livery cabs to pick up passengers who hail them from the street.

WSJ: Deal Clears Way For New Taxi Class

Taxi fleet owners sued New York City Mayor Michael Bloomberg and the city Wednesday in an effort to block new rules that allow livery cabdrivers to pick up passengers who hail them on the street.

WSJ: City Sued Over New Cab Rules

The smart phone app Uber allows people in cities to hail an idle limo to take them to their destination.

FORBES: Does the Government Hurt Innovation?