New York Mayor Bill De Blasio has lost round one against Uber.
After locking horns with Uber, De Blasio has backed down from his plan to cap Uber’s growth in New York. Under a new agreement, the city will conduct a four month study on the environmental effects of on-demand car services rather than limiting the number of vehicles companies like Uber can operate in New York, according to the New York Times. Council members say a cap isn’t off the table and they may limit vehicles later on.
The concession comes after Uber launched a massive rebuttal campaign against the cap.
In addition to advertising, Uber added a tab on its app called “De Blasio,” which shows what waits for cars would be like if City Hall were to vote in favor of the cap. New York governor Andrew Cuomo and the New York Times Editorial Board also criticized the ban.
Uber, with its oodles of investor funding, is a difficult opponent to go up against. Not only does the company seem to have endless cash, but it also aligns itself with the working class and provides a popular service to many New Yorkers. De Blasio isn’t the only official that’s had difficulties reigning in Uber, either. The on-demand cab service has yet to yield to regulators in France and is constantly grappling with officials in Germany, though Germany seems to have had some success in dealing with Uber.
No doubt traffic congestion is a problem for New York City and De Blasio is certainly facing a lot of pressure from taxi unions, but the mayor will need to step up his game if he expects to take down Uber in the next round.