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New York City, Uber Strike 4-Month Deal On Vehicle Cap

Ride-hailing service Uber has struck a deal with New York City just a day before the City Council was due to vote on a measure that would cap the number of the service's cars in the city.

First Deputy Mayor Anthony Shorris said in a statement the city would conduct a four-month study to examine the impact of Uber and similar services on traffic congestion. He said Uber will share information for the study above and beyond what has previously been provided. The ride-hailing service also agreed to not flood the streets with new licenses and vehicles.

"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. "The City's goals and obligations are clear — protect the public, encourage growth and innovation, and keep New York City moving."

In a separate statement, Josh Mohrer, Uber's general manager in New York, said:

"We're pleased to have reached an agreement with Mayor de Blasio's administration and the City Council to collaborate on a joint transportation study and to work together on ways to continue expanding economic opportunity, mobility and transportation access in the city. We are pleased new drivers will continue to be free to join the for-hire industry and partner with Uber."

Mayor Bill de Blasio's administration had sought a 1 percent cap on Uber's growth within New York City, pending a study on traffic patterns. Uber had opposed the measure. The compromise reached Wednesday would drop for now the city's proposed limit on Uber's vehicles.

The Associated Press reports that Uber, a $40 billion company, is a dominant force on the city's streets with 25,000 cars compared to 13,000 of New York's iconic yellow taxis.

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