The New York City-based company Revel, best known for its moped-share program, is hoping to crack into the app-based taxi market with a small fleet of 50 blue, electric Teslas. The company was hoping to start operating this month in Manhattan under a loophole in city rules, which allows new taxis on city streets if they’re either electric or wheelchair accessible. But the city is claiming there are enough taxis already, and the loophole was intended for existing companies. It now appears poised to eliminate the loophole, dimming Revel’s push to add electric vehicles to the city’s for-hire taxi market.

The Taxi and Limousine Commission is holding a hearing on its electric vehicle exemption rule on June 22nd, which is also primary election day. In its notes on the proposed rule change, the TLC writes that since 2019, when restrictions on new taxis went into effect, it has allowed 400 new battery-powered vehicles on the road. 

“Adding more vehicles to the FHV [for-hire vehicle] fleet, battery, electric or otherwise, will increase traffic congestion and, in doing so, slow the movement of traffic and increase greenhouse gas emissions,” the TLC notes. 

In 2019, as congestion from a flood of new for-hire vehicles was clogging city streets, as well as decimating the livelihoods of an already hobbled yellow cab industry, Mayor de Blasio and the City Council took action to curb the e-hail industry with a slew of new rules and regulations. It included capping the number of for-hire vehicles that could operate on city streets, as well as regulating how many hours an Uber or Lyft driver could cruise around looking for a passenger, among other measures. 

But Revel claims it’s different from the other e-hail taxi services. In addition to using only battery-powered Teslas, it claims it has a more responsible business model. Rather than treating drivers as gig workers, Revel promises to hire existing Uber and Lyft drivers with TLC licenses as employees, which would allow them to earn a minimum wage, as well as sick days and paid time off. Revel said its drivers will only use the company’s Teslas for work, and won’t be required to lease or buy the vehicle.

The company also pledges to build electric vehicle charging stations across the city, which would be open to the public.

“This is literally everything this mayor and the TLC have always wanted and Revel is putting it on a silver platter for them,” said Frank Reig, CEO of Revel. “Instead, this mayor is putting on a silver platter a monopoly to Uber and Lyft, killing any competition to Uber and Lyft.”