Uber’s ‘Greyball’ Could Slow N.Y. Ride-Hailing Bill

Keep up with the latest developments and legal issues in the telecommunications and emerging technology sectors, with exclusive access to a comprehensive collection of telecommunications law news,...

By Gerald B. Silverman

Uber Technologies Inc.'s alleged use of a program to evade authorities could hurt the chances for passage of a bill in New York this year to allow ride-hailing in upstate areas.

An association of taxi and livery companies called on Gov. Andrew Cuomo (D) and the state legislature’s top leaders in a March 8 letter to halt consideration of a ride-hailing bill and open an investigation into Uber’s alleged use of the program, known as Greyball.

“Uber’s use of Greyball exemplifies a corporate culture that presents a clear and present threat to New Yorkers and demands a thorough investigation before the state advances ride-sharing legislation,” John Tomassi, president of the Upstate Transportation Association, said in the letter.

In an emailed statement, Uber said, “We’re looking carefully at the use of this technology.”

The state Senate approved a bill ( S. 4159) in February that would establish a comprehensive legal framework for ride-hailing services. Cuomo has proposed a similar measure. Democrats who control the state Assembly favor a more limited bill.

To contact the reporter on this story: Gerald B. Silverman in Albany, N.Y. at GSilverman@bna.com

To contact the editor responsible for this story: Keith Perine at kperine@bna.com

For More Information

A copy of the letter is available at http://src.bna.com/mN1.

Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.

Request Tech & Telecom on Bloomberg Law