NEWARK - The city of Newark and Uber have announced a deal in which the company will pay $3 million upfront as part of a 10-year, $10 million agreement.
Newark Mayor Ras Baraka and Uber New Jersey general manager Ana Mahony announced the agreement on Wednesday, following up on a tentative deal two weeks ago.
The deal says Uber drivers cannot wait in designated taxi areas for riders. Uber must provide $1.5 million of commercial liability insurance and conduct driver background checks. The company must also enforce a zero tolerance drug and alcohol policy.
The plan was not without opposition. The Newark Cab Association says that taxi drivers weren’t included in the final agreement between Newark and Uber.
The association’s chief counsel, Pat Russo, says that he is afraid that the plan will put taxi drivers at a disadvantage.
“They're not afraid of technology, they embrace it. But they just don't want the government to pull the rug from under them and create a secondary standard,” he says.
Baraka announced a tentative deal two weeks ago that included a fee for operating at Newark Liberty International Airport. But the Port Authority of New York and New Jersey, which operates the airport, raised concerns about the city's proposal, saying that the agency should have the final say in airport terminal agreement.
Mayor Baraka says that it doesn’t matter since Newark owns the property and the Port Authority only leases it.
The Newark Cab Association says it will pursue every legal avenue to fight the agreement.
The agreement comes on the heels of neighboring Elizabeth's decision to postpone a ban on Uber.
The Associated Press wire services contributed to this report.