Uber And PPA Shake Hands On Temporary Deal
PHILADELPHIA (CBS) -- The Philadelphia Parking Authority and Uber have struck a temporary deal that will allow the ride-sharing service to operate legally in the city.
Between now and September 30, the Philadelphia Parking Authority has agreed not to impound Uber vehicles. In return, Uber pays a settlement of $350,000.
"Today's agreement means that riders and drivers who use Uber will have legal certainty," said Uber Philadelphia GM Jon Feldman.
The two sides agreed on the temporary truce now, to ease travel during the SEPTA rail crunch and the Democratic National Convention coming to town. PPA Executive Director Vince Fenerty knows that taxis, who pay fees and buy medallions, won't like this.
"During this, I don't believe the taxi drivers are going to be happy. But they've had the competition. They've had the opportunity to improve their own services to compete with Uber over the last year."
The two sides are awaiting state legislation that would legalize Uber in the city. But PPA general counsel Dennis Weldon says riders certainly haven't been waiting.
"People in Philadelphia right now use the service. We're not blind to the fact that months ago Uber announced that a million people had used the service."
Lyft is not a part of this agreement. Fenerty says the Authority is still speaking with them.
