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Uber strikes deal with New York to avoid car cap | Uber strikes deal with New York to avoid car cap |
(about 1 hour later) | |
New York Uber users can rest easy: there will be no limit on the number of its cars cruising the streets following a deal between the mayor’s office and the online taxi service. | New York Uber users can rest easy: there will be no limit on the number of its cars cruising the streets following a deal between the mayor’s office and the online taxi service. |
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 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 city council had been due to vote on Thursday on legislation that called for a 1% cap on Uber’s growth in New York while a 12-month study into its impact on traffic and the environment was conducted. | The city council had been due to vote on Thursday on legislation that called for a 1% cap on Uber’s growth in New York while a 12-month study into its impact on traffic and the environment was conducted. |
Related: California taxis can sue Uber over ads claiming safer service, judge rules | Related: California taxis can sue Uber over ads claiming safer service, judge rules |
Uber has fiercely opposed any restriction and last week released an update in which users could select a “De Blasio” option that showed fewer, or no, cars available nearby in New York. | Uber has fiercely opposed any restriction and last week released an update in which users could select a “De Blasio” option that showed fewer, or no, cars available nearby in New York. |
The deal means there will be no restrictions on Uber while it conducts a four-month study. | |
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. | |
First deputy mayor Tony Shorris, who is running city hall while De Blasio is on a European visit, said: “The city received a willingness on the company’s part to make sure there was no effort to flood the market with dramatically increased rates of growth. The company eventually agreed to what we’ve been asking for a while.” | First deputy mayor Tony Shorris, who is running city hall while De Blasio is on a European visit, said: “The city received a willingness on the company’s part to make sure there was no effort to flood the market with dramatically increased rates of growth. The company eventually agreed to what we’ve been asking for a while.” |
City officials said the deal is similar to what De Blasio had originally offered Uber. It was struck after Uber executives held a meeting on Wednesday with officials from the council and the mayor’s office. | City officials said the deal is similar to what De Blasio had originally offered Uber. It was struck after Uber executives held a meeting on Wednesday with officials from the council and the mayor’s office. |
The New York governor, Andrew Cuomo, was among the public officials who had called for the council to delay the vote and welcomed the agreement. | The New York governor, Andrew Cuomo, was among the public officials who had called for the council to delay the vote and welcomed the agreement. |
Josh Mohrer, Uber NYC’s general manager, said: “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: “We are pleased new drivers will continue to be free to join the for-hire industry and partner with Uber.” |
The company had rejected the mayor’s main argument: that Uber played a major role in traffic congestion. | |
It has about 25,000 vehicles on its books in New York – more than double the number of yellow taxis. | It has about 25,000 vehicles on its books in New York – more than double the number of yellow taxis. |
However, the company said it had an average of just under 2,000 cars an hour in the city’s central business district during the day, far fewer than the number of yellow taxis. | |
City officials say that yellow taxis make 90% of their trips in Manhattan. Uber claims that a far lower percentage of its rush-hour trips begin on the island. | City officials say that yellow taxis make 90% of their trips in Manhattan. Uber claims that a far lower percentage of its rush-hour trips begin on the island. |
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. | 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. |
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