New York City says it won’t cap Uber’s growth

A deal has been struck between New York City and Uber on the eve of a City Council vote that could have placed a cap on the number of cars the ride-hailing company can have on the streets of the nation’s largest city.

Mayor Bill de Blasio’s administration announced Wednesday that Uber agreed to a four-month study on the impact of the cars on traffic and the environment. Under the deal, the city will not cap Uber’s growth during those four months.

The agreement contrasts with the legislation the council was set to vote on Thursday that called for a 1% cap on the San Francisco company’s growth in New York during a yearlong study. Uber has steadfastly opposed any cap, and the company and City Hall had traded increasing nasty barbs over the last week.

But the hostilities were set aside to announce the surprise arrangement, which also includes commitments from Uber to make more of its vehicles handicap-accessible and to turn over data to the city on the location and duration of its rides.

City officials said the deal was reminiscent of what the de Blasio administration offered Uber early in the negotiating process. They said a cap could still be imposed if Uber reneges on the agreement.

In California, the ride-hailing company does not face a government-imposed cap, but has been under scrutiny for failing to turn over data about passenger pickup and drop-off locations to the state Public Utilities Commission.

It is unclear whether the data Uber will report to New York City officials is different from what the California PUC has requested.

“We are pleased new drivers will continue to be free to join the for-hire industry and partner with Uber,” Josh Mohrer, Uber NYC’s general manager, said in a statement.

Uber, a $40-billion company, has become a dominant force on the streets of New York, dispatching 25,000 cars compared with 13,000 of the city’s iconic yellow taxis.