Uber's being banned in East Hampton has to do with the fact that the town requires the business and its drivers to have physical addresses, Uber's New York general manager, Josh Mohrer, said on Friday.
Larry Cantwell, East Hampton's supervisor, banned Uber, which prompted the shutdown.
Uber users received an email from the company on June 5 explaining the shutdown.
"It's not just about Uber having the office," said Mohrer during CNBC's "Squawk Alley." "It's that every single individual driver also has to have an address in East Hampton, with a shingle and everything."
"We were licensed for two years, and they changed the law and made it harder."
Cantwell said Uber was contributing to traffic as well as safety issues increases during a Friday interview with CNBC's "Squawk on the Street."
"In East Hampton, people take their quality of life very seriously," said Cantwell.
"And on weekends, we have hundreds and hundreds of cabs descending on places like downtown Montauk, creating traffic and parking problems. We have cab drivers from outside the area who are sleeping in their cars and creating public safety issues."
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The ban has caused concerns about drunk driving in the Hamptons, a popular vacation spot during summer.
Cantwell proposed other alternatives to Uber when the topic of drunk driving was brought up.
"We have options as individuals, which are we can carpool, we can have a designated driver," he said. "We can have a cab. We can take public transportation."
Mohrer said he doesn't understand where the residents complaints mentioned by Cantwell came from.
"I don't know who Mr. Cantwell is talking to," Mohrer said. "But both residents all year-round and summer visitors alike are depending on Uber for a reliable ride."
Mohrer also added that 6,000 East Hampton full-year residents use Uber.
Uber has used the app to announce to East Hampton users the unavailability of its service in the town as well as a way to voice their opinions.
Cantwell said that "Uber did an aggressive public relations campaign," which led to the town's receiving more than 1,000 emails from the company's clients. The town had also been contacted by some Uber competitors, which wanted to roll out their services in East Hampton.
Cantwell explained that the new law isn't about opposing Uber.
"This is about Uber adjusting their business model slightly to conform to what our community really wants," Cantwell said.