Uber Settles Dispute In Newark By Reaching Agreement With Administration

Uber looks like a winner, as it is glad with the tentative agreement

The administration of Mayor of Newark Ras Baraka said on April 15, 2016 it had reached a “tentative agreement” with Uber, possibly ending months of public fighting between the mayor of New Jersey and the famous smartphone based ridesharing service.

In July 2 years ago, a Democrat Mr. Ras had tried to restrict the operations of the American cab company at the train station and airport of the city and backed an ordinance under which, the driving partners of the company would have been required to pay $1500 in annual licensing fees.

The deal on April 15, 2016 seems to have scuttled the planned ordinance, which according to schedule had to be voted at Newark’s city council on April 14, 2016. The Californian organization had alleged Ras of favoring “special interests” in the cab industry. It threatened to stop operations in region if the law was passed.

The office of mayor did not reveal any information regarding the deal on April 15, 2016. Uber said it was happy with the tentative deal. As many cities across the state, the taxi industry of the city is facing harsh rivalry from Uber and other similar taxi services.

In Newark, a taxi medallion in recent times offered for $260,000 from a figure of $530,000 a year ago, revealed a domestic medallion broker. Ras resisted demands by cab drivers to impose a ban on Uber, but supported efforts to control the ridesharing companies.

The company revealed that 2000 residents of Newark serve it as its driving partners. Executives of the company have alleged the mayor of aiming at workers to safeguard the cab industry of the city. The city police has issued over 3000 tickers to drivers of Uber since Ras started to work as Mayor and confiscated the vehicles of 20 Uber drivers, officials of the company said.

Uber started to run a social network campaign against the office of Ras on April 15, 2016, sending out emails to its users in the region asking them to communicate with Ras and tell him that they oppose the law.

The ordinance would have required drivers of the organization to buy a $1,000 yearly “Liberty License” to offer rides to riders from the airport and downtown railway station in Newark and a $500 annual “transportation network license.”

Taxis differ by paying a $300 annual licensing fee and no additional charge for providing their services at the railway station or airport. A Mayor’s spokesperson said cab companies pay other charges, like medallion cost, not bore by companies such as Uber.