NEWARK, N.J. (CBSNewYork/AP) — Newark’s mayor has released details on the tentative agreement he’s reached with ride-hailing company Uber to operate in New Jersey’s largest city.
The deal seeks to resolve the recent dispute between Newark and Uber over taxes, licensing, and background checks, WCBS 880’s Stephanie Colombini reports.
The deal calls for Uber to pay the city $1 million a year for 10 years for permission to operate at Newark Liberty International Airport. The company also will provide $1.5 million in liability coverage for all drivers in its network.
Mayor Ras Baraka says Uber also agreed to have a nationally-accredited, third-party provider conduct background checks on all of its drivers and enforce a zero-tolerance drug and alcohol abuse policy.
“The agreement we reached is fair to all and allows UBER to become a good corporate citizen alongside Airbnb, another Internet-based company that agreed to regulation by Newark this past week. Newark has now led the way for the entire state of New Jersey in terms of striking a fair balance that allows the tech sector to thrive while playing by the rules,” the mayor said in a released statement.
Baraka announced the agreement Friday night. The details of the deal were made public Saturday.
The city and Uber had been in a public dispute recently over taxes, licensing and background checks.
“UBER provides a valuable service. All we asked is that UBER drivers who service the people of Newark submit to strict background checks and that the company pays license fees just like other transportation companies in the city. We license every business from restaurants to nail salons. It is only fair that UBER be subject to this same standard to operate in Newark,” Baraka added.
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