Uber, De Blasio Administration Strike Deal On For-Hire Vehicle Cap
NEW YORK (CBSNewYork/AP) -- Mayor Bill de Blasio's administration has announced a deal between the city and ride-hailing service Uber regarding a measure being considered in the City Council that would have capped for-hire vehicles for a year.
The administration said Wednesday that Uber has agreed to a four-month study on the impact of car service vehicles on traffic and the environment.
There will be no cap on Uber's growth during the study.
According to CBS2's Marcia Kramer, the deal will include extended conversations on wheelchair accessibility, possible surcharges collected to help the Metropolitan Transportation Authority and driver's rights.
The company also agreed to share data on the location and duration of rides.
The City Council was expected to vote Thursday on legislation that would've capped Uber's growth at 1 percent for a year while the company's impact on traffic was studied.
As CBS2's Tony Aiello reported, Deputy Mayor Tony Shorris said Uber accepted a deal that the city presented 10-days-ago.
"They reached out to us yesterday. I don't think that it's accidental the council was going to vote tomorrow," he said.
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The two sides worked furiously behind the scenes Wednesday to sway public opinion and votes.
Uber, the $40 billion California-based company, has become a dominant force on New York City's streets.
It flatly rejected a cap. The company released data that showed it has far fewer cars than yellow taxis in Manhattan's central business district.
Cuomo Sounds Off On De Blasio-Uber Fight
Ahead of Wednesday's deal, Gov. Andrew Cuomo broke his silence on the issue, saying he does not think government should "restrict job growth."
"First, we're trying to do the exact opposite. We've been taking about the minimum wage; we work very hard to create jobs -- this is a company that's creating jobs. And I think if you say we're going to try and cap your job growth here, they'll go next door and grow their jobs," Cuomo said.
Cuomo said that if New York City tried to stop Uber's growth rate, the company might simply set up its franchises in the suburbs and then drive into town.
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"If New York City tried to stop to cars coming from Nassau and Westchester, what happens if Nassau and Westchester and Suffolk and the other counties said 'Well your cabs can't come into our counties?' So things get very complicated very quickly and there's statewide ramifications," Cuomo said.
On Tuesday, Comptroller Scott Stringer also called on the City Council to postpone the vote until after the traffic study is conducted.
Cuomo's comments on the issue came against the backdrop of de Blasio making the ongoing political feud between them public.
Things between the two got so bad that former Sen. Al D'Amato invited the two to a "pasta summit" at Rao's, but they declined.
Many internet headlines have portrayed this as a defeat for de Blasio.
"It's another in a string of minor but unfortunate setbacks for the mayor. This is one of the few growth areas in New York City's economy, why would you do anything to stifle it? Makes no sense," political consultant Gerry O'Brien said.
The Mayor's office portrayed the deal as a big win, and was talking tough on Wednesday. City officials said a cap could still be imposed if Uber reneges on the deal.
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