TechSpot

New York City backs down on plans to cap Uber growth

By midian182
Jul 23, 2015
Post New Reply
  1. New York City Mayor Bill de Blasio has dropped his proposed bill that would have capped the growth of all for-hire vehicle companies like Uber. Instead of a regulation, the New York Times reports Uber and the Mayor’s office have agreed to a four-month study on the effect of ride-hailing’s impact on traffic congestion.

    Under the proposed legislation, Uber’s growth would have been limited to 1 percent while the city conducted a much longer study. The city council was expected to vote on the bill on Thursday, but under the new agreement the vote is off. The Mayor’s office states, however, that it reserves the right to limit the company’s growth at a later date.

    The move follows Uber’s massive campaign to fight the proposed bill. The company took out ads in the New York Times, gave free rides to attend a city hall protest, and managed to get A-list celebrities to publicly defend the ride-hailing service on Twitter, including Sports Illustrated model Kate Upton, Ashton Kutcher and Neil Patrick Harris. Moreover, Uber added a new feature to its app that let users see what the alleged wait time for an Uber car would be if the mayor's bill was passed.

    As a result of the new agreement, Uber will be pulling the many anti–de Blasio online and TV ads. The ‘de Blasio option’ has also been removed from the company’s app.

    New York is one of Uber’s biggest markets; the company has spent at least $225,000 on lobbying the mayor's office, the city council and the Taxi and Limousine Commission since 2014. It is estimated that Uber will generate $10 billion in revenue by the end of this year.

    Permalink to story.

     
  2. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 2,754   +1,107

    There's a scary line for anyone who believes companies should be free to meet the demands of their customers as they please. Imagine if Apple were only allowed to sell a certain number of iPhones per year.

    Next in in the mayor's crosshairs is AirBnB.... because having affordable places to sleep in NY would take away business from the overpriced hotels. And those hotels aren't to happy about it, and are letting the mayor know.

    Whatever happened to regular old competition?
     
  3. mojorisin23

    mojorisin23 TS Booster Posts: 124   +23

     

Similar Topics

Add New Comment

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...