Newark Uber Wars Reach Possible Detente: $10M Rideshare Deal Would Be '1st In N.J.'

Newark, NJ – The Newark Uber Wars may have arrived at a détente.

On Saturday, Newark city officials announced that the municipality has reached a tentative agreement with Uber that would charge the rideshare service $10 million to operate at Newark Liberty International Airport over the next decade.

The tentative agreement comes after months of hostility between city officials and Uber regarding proposed regulations for rideshare services in Newark.

• See related article: Newark Uber Rideshare Wars Begin: Driver Allegedly Fined $2,500
• See related article: Newark Uber Law In The Works: Drivers Would Be Licensed, Drug Tested

City officials released details about the tentative agreement, which still needs to be signed by both parties.

Under the terms of the agreement, UBER would:

• Pay $1 million a year over 10 years to the City of Newark for operating at Newark Liberty International Airport
• Provide $1.5M of commercial liability insurance coverage for all transportation network company drivers operating on the platform
• Conduct background checks on all drivers through a nationally-accredited, third-party provider. These checks will examine county, state and federal records, as well as motor vehicle records, sex offender registries and terror watch lists
• Enforce a zero tolerance policy for drug and alcohol use by drivers using the UBER app.

"In proposing to regulate Uber in Newark, my goals have been to protect the safety of Uber riders, to require Uber to pay its fair share including fees and permits under the same kind of regulations as other businesses in Newark, and to create a level playing field for Uber and the Taxi and Limousine Industry,” Newark Mayor Ras Baraka said. “This agreement achieves just that.”

“Uber provides a valuable service,” Baraka asserted. “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 contended that the agreement is “fair to all,” and will allow Uber to “become a good corporate citizen.”

The mayor referenced another recent agreement between the city and another Internet-based company, Airbnb, stating that “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.”

• See related article: Newark Reaches Deal With Airbnb, Will Tax Company 'At Same Rate As Hotels'

Uber representatives also expressed support of the potential deal.

"Uber is proud to be the first ride-sharing company to reach a compromise with the City of Newark," spokesman Matthew Wing told NJ.com. "We thank Mayor Baraka for his leadership in making Newark the first city in New Jersey to embrace comprehensive and fair ride-sharing regulations."

The tentative agreement is still being opposed by some taxi drivers in the city, who claim that the deal “creates an unfair balance.”

The proposed agreement would still need to be approved by the Newark City Council.

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