Newark and Uber agree to deal with $3 million upfront payment

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

Newark officials announce the details of their deal with Uber.

Newark officials announce the details of their deal with Uber. (4/27/16)

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.

advertisement | advertise on News 12

Trending Video

Monmouth County officials continue to search for missing 1 Officials continue to search for missing 19-year-old
Police in Asbury Park calling for cease fire 2 Police in Asbury Park call for cease-fire after shootings
Fatal shooting marks 10th 2016 murder in Plainfield 3 Fatal shooting marks 10th 2016 murder in Plainfield
Belleville man accused of sexually assaulting 14-year-old boy 4 Belleville man accused of sexually assaulting 14-year-old
VIDEO: Shoppers brave the cold for holiday deals 5 VIDEO: Shoppers brave the cold for holiday deals

advertisement | advertise on News 12

More News

Elizabeth officials passed legislation for regulations for Uber Elizabeth considers regulations for Uber drivers

Officials in the city of Elizabeth are considering imposing more regulations on ride-sharing companies like

Newark taxi drivers protest in front of Newark Newark taxi drivers stage protest over Uber deal

Taxi drivers in Newark are staging a protest in front of City Hall to show

As part of the agreement, Uber will pay Newark, Uber reach deal; service to be regulated

After a public war of words, Uber and the City of Newark have struck a

Newark officials reach tentative agreement with Uber to Newark, Uber reach tentative agreement

The city of Newark and ride-sharing company Uber have reached a tentative agreement to keep

Sorry to interrupt...

Your first 5 are free

Access to News12 is free for Optimum, Comcast®, Time Warner® and Service Electric℠ video customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.

LOGIN SUBSCRIBE