NEW YORK, NY – Mayor Bill De Blasio had proposed a temporary cap on the number of new licenses issued to Uber and smaller competitors like Lyft. Uber, for instance, would have only been able to increase its license count by 1%, or 200 cars, in a year’s time.
On Wednesday, the de Blasio administration said it won’t take the bill to the City Council, which was expected to happen as soon as Thursday. The Mayor’s office said it would take up the issue again after completing additional studies on traffic congestion and the impact on drivers.
“The cap legislation currently before the City Council will be tabled throughout the traffic study process,” said First Deputy Mayor Anthony Shorris in a statement.
According to the NYC Taxi and Limousine Commission, there were 2,000 new vehicle licenses being issued each month — and the vast majority (72%) of pickups are in congested areas of Manhattan.
The fight over the proposal had turned ugly. Uber had launched a television ad campaign against de Blasio’s plan of action — and even added a fake de Blasio feature to its app that showed massive delays to get an Uber if the plan were to go through.
When news broke Wednesday that de Blasio had decided to put off pursuing the cap, Uber was gracious in accepting the victory: “We’re pleased to have reached an agreement …this is great news for all New Yorkers, including Uber riders and drivers,” said Josh Mohrer, Uber New York General Manager.