NYC Backs Down On Plans to Curb Uber’s Explosive Growth

De Blasio discussed the situation, referring to Uber as the “multibillion dollar corporation which is looking out for its own interests and its own profitability”.

Uber on Wednesday stepped up its battle with New York Mayor Bill de Blasio, calling his plan to restrict ridesharing growth a sign of “contribution politics”.

A previous bill from the New York City Council aimed to put a cap on the number of Uber cars in operation during the study, and while the news will be great for Uber, city officials have said that a cap is still possible further down the line.

The mayor has postponed a City Council vote-originally scheduled for tomorrow-on whether or not Uber (and all other for-hire vehicle companies, for that matter) should submit to a temporary growth cap.

The company consented to a four-month study of its impact on traffic and the environment while the City Council agreed to sideline legislation that would cap expansion. Uber claimed that the cap would have resulted in the loss of thousands of potential new jobs. Uber will provide some of its ride data for the study.

On Wednesday, the de Blasio administration said it won’t take the bill to the City Council, which was expected to happen as soon as Thursday. The city had suggested that Uber might be responsible for slower traffic speeds in Manhattan – a charge rejected by the company.

During the dustup, many celebrities who live in New York tweeted their support for keeping Uber’s fleet uncapped. But actual riders balked, saying New York’s yellow (and green) cabs were notoriously unavailable and lacked the convenience of Uber, which has arguably the best ride-sharing and ride-hailing app.

“Taken together, these elements represent a smart and fair way to address the issues posed by the [for-hire-vehicle] industry in New York“, Shorris said.

When talks broke down last week, Uber launched a television advertising campaign that depicted De Blasio as being too close to the yellow taxi industry, which is one of his biggest donors.

Even The New York Times noted that City Hall was inundated with complaints from Uber users.

“We are pleased new drivers will continue to be free to join the for-hire industry and partner with Uber”, Josh Mohrer, Uber NYC’s general manager, said in a statement. “This is one of the few growth areas in New York City’s economy, why would you do anything to stifle it?”

But the city is under pressure from the Taxi and LimousineCommission, or TLC, as taxi medallions have lost some 20 percent of their value since 2011.