A deal brokered by Seattle Mayor Ed Murray would lift a cap on the number of rideshare cars allowed on the road at one time.
The agreement between rideshare companies such as Uber and Lyft, taxi companies and other for-hire drivers would replace regulations recently adopted by the City Council. The council must approve the plan.
Uber, Lyft and others use smartphone apps to dispatch drivers who use personal vehicles.
The council in March limited each company to 150 rideshare cars on the road at one time. The companies said it would hurt their business, and they backed a campaign to repeal the rules through a referendum.
The deal announced Monday requires rideshare companies and drivers to be licensed and meet insurance requirements. The city would also provide 200 new taxi licenses over four years.