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

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

New York City Mayor Bill De Blasio and Uber have cut a backroom deal that will prevent the “Uber Cap” legislation, which would have limited the number of cars the company could keep on the street, says the New York Times.

According to the report:

Under the agreement, according to three people familiar with the agreement, the city will conduct a four-month study on the effect of Uber and other for-hire vehicle operators on the city’s traffic and environment.

Uber has also agreed to handover some data the city has sought.

Under the proposed legislation Uber’s growth would have been limited to 1 per cent unt, which might’ve hit the City Council for a vote as early as tomorrow, would have capped Uber’s growth while the city conducted a much longer study.

Uber attacked the study aggressively with a campaign in its app as well as with an extensive mailing campaign. Celebrities like Kate Upton and Neil Patrick Harris came out in opposition to the bill on Twitter, and perhaps most importantly, the legislation is opposed by New York Governor Andrew Cuomo.

In fairness, Uber is right that the bill was something of a handout to the city’s powerful taxi lobby. This should be seen as a significant victory for Uber. Yup. Uber 1, De Blasio 0.

[New York Times]


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