NYC Strikes Uber Deal: No Cap on Company During Study
Uber shot back with a spoof “de Blasio” mode in its app that displayed the message “No cars available” when a user looked for a ride in New York City.
De Blasio agreed to temporarily table a bill he proposed, which would limit Uber’s growth.
The company will also give the city more data about its journeys and will examine how to make more of its vehicles accessible to people with disabilities. “We are pleased new drivers will continue to be free to join the for-hire industry and partner with Uber”. The fact that the taxi industry donated heavily to de Blasio’s mayoral campaign only complicates matters.
Uber has become the symbol of innovation and disruption in an industry, changing the way many people travel in major cities around the world. “How is a fixed number of cars supposed to serve this demand for rides?”
On the other side of the country, meanwhile, Uber could be hit with a $7.3 million fine for failing to provide adequate data to the California Public Utilities Commission.
Uber officials also said it has an hourly average of just under 2,000 cars in the city’s central business district during the day, a far cry from the huge number of yellow taxis that operate there. Ashton Kutcher, an Uber investor, has been among the loudest critics, but others, like actor Neil Patrick Harris and supermodel Kate Upton have also weighed in.
The Times reports that the city will now be conducting a four-month study about congestion, traffic, and pollution, which it said Uber may be contributing to. This doesn’t mean the vehicle service is in the clear, because if they violate any portion of the agreement the cap could still be implemented. It said it has 26,000 full- and part-time vehicles in the city and would have been limited to only 200 more in the next year.
Uber aggressively fought the original bill over the last month, flooding the New York airwaves with commercials featuring sad testimonials from Uber drivers on why the ban would leave New Yorkers stranded and drivers out of a job.
“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”. But under the new agreement, the vote is off.
The city will now move ahead with the traffic study to be finished up by the end of November, according to a statement released by First Deputy Mayor Anthony Shorris.
During the study period, Uber will share information “above and beyond what has previously been provided” with the city about its customers and usage – “with safeguards to protect privacy”.