If that is indeed the case, I feel like this makes sense and is a normal thing for a job. Making sure that your employee is staying productive to a certain degree and not over-hiring.
Too many drivers on the road means people have less work to share. I am super reluctant to side with either of them but to call this a "loophole" doesn't seem right. To me it seems like them doing what they should have been doing this entire time and making sure passenger demand and driver availability properly line up.
What am I missing here?