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NYC relaxes on Uber regulation - for now

July 23, 2015

City Council was set to vote on legislation that would cap Uber's growth in the Big Apple at 1 percent, but that's been put on hold. The mayor wants to study the app's impact on traffic first.

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Image: Fotolia/Delphotostock

Mayor Bill de Blasio's office announced Wednesday that the controversial proposal would take place only after a "comprehensive" study had been conducted into the car-sharing service's impact on congestion in the city.

"This sets in motion a plan to guide a comprehensive and fair public response, driven by data, to the increase in for-hire vehicles. And it ensures that the future growth of this industry matches the values and the interests of New Yorkers," read the statement, drafted by First Deputy Mayor Anthony Shorris.

Uber has drawn sharp criticism from taxi drivers around the world and in New York, who complain the popular company underpays its drivers, causes congestion and unfairly takes away business.

The City Council had been set to vote Thursday on a law that would have limited the number of Uber vehicles allowed to compete with taxis in New York, capping the company's growth at 1 percent.

The plans to cap the service have met with harsh criticism from Uber users and celebrities, including American actor Neil Patrick Harris, famous for his sitcom role as kid genius physician Doogie Howser, M.D.

The booming company praised the agreement with city leaders, in particular the decision to table the growth cap vote, following a protracted back-and-forth that was fierce at times.

De Blasio called Uber a large corporation "looking out for its bottom line" without considering the consequences of its growth on the city's congestion and pollution levels.

He claimed earlier this week that with 2,000 new Uber cars registered every month, the car service now has more than 20,000 vehicles on the streets of New York. In comparison, the city has 13,500 yellow cabs.

Uber countered by saying De Blasio was pushing the agenda of cab companies after taxi operators had made significant contributions to his mayoral campaign.

glb/kms (Reuters, AP, dpa)