Newark Uber Law In The Works: Drivers Would Be Licensed, Drug Tested

Newark, NJ – The off-again, on-again Newark Uber wars have taken another turn.

Last week, Newark city officials released details about a proposed municipal ordinance that would create a truce with Uber and Lyft drivers and allow them to pick up passengers from Newark Liberty International Airport and/or Newark Penn Station.

The rideshare drivers would be required to pay a $750 yearly license fee, in addition to an annual “Transportation Network License” fee of $250, city officials stated.

The proposed ordinance would be a change in policy for an administration that declared it would be cracking down on unlicensed Uber and Lyft drivers in February, then abruptly rescinded its enforcement announcement.

• See related article: Newark Uber Crackdown Delayed, Port Authority Won't Ticket Uber Drivers

Since then, many rideshare drivers have been watching the evolving legal landscape in Newark with caution.

• See related article: Newark Uber Rideshare Wars Begin: Driver Allegedly Fined $2,500

However, if the city’s proposed ordinance passes, local taxi drivers may soon be forced to contend with Uber and Lyft competitors at two of the highest-traffic destinations in Newark.

But that doesn’t mean that the newly licensed drivers will have carte blanche to operate as they please, city officials stated.

“This ordinance has been written with the intent of regulating drivers of ridesharing services in a way that is similar to regulations for yellow cabs,” Newark Mayor Ras Baraka stated in a news release.

“We want to see a level playing field in which uniform regulations apply to Uber as well as taxis. It is completely unfair to taxi drivers who are also workers trying to support their families to allow Uber to circumvent the law. Taxis must apply and pay for permits to operate. Uber drivers do not. Taxis are waiting two hours to pick up fares while Uber skips the lines. They also do not pay the city any additional revenue as taxi cabs do to pick up from the airport and Penn Station. This legislation would require ride sharing drivers to pay a licensing fee, submit to drug testing and backgrounds checks as well as pass a vehicle inspection every two years.”

A “Transportation Network Company” such as Uber or Lyft that violates the provisions of the proposed ordinance would be subject to a civil penalty of $1,000 for the first offense, per driver, and up to $5,000 for each subsequent offense, per driver.

UBER REPLY

An Uber spokesperson provided Patch with the following statement about the city's proposed ordinance:

"This ordinance is yet another indication that Mayor Baraka cares more about pleasing his taxi donors than doing what’s best for Newark residents. There is no reason why drivers should be subject to a patchwork of varying municipal regulations, especially when so many trips take place across city lines. New Jersey needs modern, statewide regulations for ridesharing as soon as possible."

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