Uber strikes deal with NYC

The surprise agreement follows a war of words in which New York city mayor, Bill de Blasio, accused Uber of trying to “dictate to government” and failing to take a “wise course” in its dealings with the city.

The original Uber cap bill, pushed by de Blasio and sponsored by Council members Rory Lancman (D-Hillcrest), Karen Koslowitz (D-Forest Hills), Paul Vallone (D-Bayside), Costa Constantinides (D-Astoria), among others, would limit Uber to about 200 new drivers in 2015 until the completion of a traffic impact study.

The company had claimed such a limitation – which still hasn’t been ruled out by the Council or de Blasio – would hurt efforts to expand on Staten Island. Uber also estimates that 600,000 trips are clocked within Queens each month.

The environmental review will assess the impact of for-hire vehicles on New York City congestion – a chief City Hall complaint about what it saw as the unchecked expansion of Uber’s fleet. The proposal that has been tabled would have temporarily capped the growth of Uber and other for-hire vehicles in New York City through April 2016. He said Uber will share information for the study above and beyond what has previously been provided.

According to city officials, yellow taxis make 90 percent of their trips in Manhattan, while Uber showed a far lower presence even during rush hour.

The agreement contrasts with the legislation the council was set to vote on Thursday that called for a 1% cap on the California-based company’s growth within the city during a yearlong study.

Uber NYC’s general manager, Josh Mohrer, announced they have already agreed with the deal since this will help them determine ways to improve transportation and help the economic opportunities expand, Wall Street Journal added. “Again, Uber has grown intensely in this city, and that’s great and they provide a service that a lot of people take advantage of, but there still has to be some balance in this equation”.

On the one hand, Uber has made transportation so much cheaper and more convenient, especially when the alternative is city cab services that refused to evolve with the times.

Before the deal was reached, City Hall argued that the company’s commitment to Staten Island was less than honest. In New York, complaints have centred around the idea that the firm has become too dominant, overtaking the city’s iconic yellow taxis. The cap is reportedly still a possibility somewhere “down the line”.

“This is good news for consumers and drivers, and we thank the City Council for listening to our concerns about removing carpooling options, which we see as part of the solution to traffic congestion”.

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“I think this is less about traffic congestion than it is about political contributions”, Senior Vice President of Policy and Strategy at Uber and former Senior Advisor to President Obama David Plouffe told The New York Times.