Uber operation in New York City will continue, but the company has to abide the conditions set by the mayor's office. On Wednesday, de Blasio's administration decided to cancel the cap plan but decided on another strategy instead. 

The unwritten deal declares that the city will conduct a study as to how the industry of Uber and other for-hire vehicles affect the transportation system of the city. The research will try to pinpoint how to deal with issues such as handicap accessibility and Metropolitan Authority surcharges. According to First Deputy Mayor Anthony Shorris, this study will begin immediately and will end in November, the Wall Street Journal reported. 

Uber NYC's general manager, Josh Mohrer, announced they have already agreed with the deal since this will help them determine ways to improve transportation and help the economic opportunities expand, Wall Street Journal added. 

New York City Gov. Andrew M. Cuomo, publicly known for criticizing de Blasio's decisions, has fiercely supported the Uber industry and declared it "one of the great inventions of the new economy." Since it provides additional income for the service providers, Cuomo said in a radio program, "I don't think the government should be in the business of trying to restrict job growth," the New York Times reported.

The city records have shown that Uber spent $225,000 since last year to lobby the mayor's office, the City Council and the Taxi and Limousine Commission, the New York Times previously reported.

This is not the first legal battle with the smartphone app, Uber. It has encountered policy problems all over Europe, Asia, and the United States. It has an ongoing issue with the Spanish and Korean governments. Started in 2009, Uber is the biggest company in the for-hire transportation industry. It is located in 250 cities in 57 countries and valued at $41.2 billion, according to CNET.