New Yorkers will soon be able to hail one of the city’s iconic yellow cabs via the Uber app, following the company’s announcement Thursday that it will partner with the New York City Taxi and Limousine Commission – news that sent Uber’s stock up more than four percent. price.
The car-sharing company said it has decided to team up with its former rival to help ease the driver shortage in the era of the pandemic.
As part of the deal, two taxi-calling apps currently used by NYC taxis will integrate their software with Uber’s software, allowing anyone using the Uber app to order a yellow cab.
The apps, operated by Curb and Creative Mobile Technologies, are currently used by nearly 14,000 taxis in the city, according to Uber.
On Thursday, Uber announced a partnership with yellow cabs, its former rival, in a bid to ease the driver shortage.
Two taxi-calling apps used by New York City Taxi will integrate their software with Uber, allowing anyone using the Uber app to order a yellow cab.
Both companies provide credit card payments in taxis, as well as display news, weather reports and advertisements on screens located inside vehicles, according to The Wall Street Journal.
“This is a real win for drivers — they no longer have to worry about finding fares during off-peak hours or getting to Manhattan while in remote areas,” said Guy Peterson, director of business development at Uber. statement. “And this is a real win for drivers who will now have access to thousands of yellow cabs on the Uber app.”
This feature will be fully rolled out over the summer, but until then, a limited number of New Yorkers will be able to call yellow cabs from the Uber app.
The company confirmed that Uber customers will pay the same amount for taxi rides as Uber X rides, and taxi drivers will be paid the same scale as Uber drivers.
Following the news of the deal, Uber’s stock rose more than four percent on Thursday.
Uber customers will pay for taxi rides the same as Uber X rides, and taxi drivers will be paid the same scale as Uber drivers.
The collaboration comes after years of rivalry between the taxi industry and ridesharing companies, which have been accused of driving down the cost of taxi medallions.
The deal was hailed as a “win-win” by Bruce Schaller, a former urban transit employee and taxi policy guru.
Schaller told the New York Post that this is a “significant moment” for the industry.
“I think it’s very good for the industry to get closer in this way,” Schaller said.
The San Francisco-based company has already tried the strategy in other countries, forming alliances with taxis as a growth strategy, according to the WSJ.
Uber has teamed up with taxi companies in Barcelona, Austria and Hong Kong, and according to Andrew McDonald, director of global mobility for Uber, 35 percent of people who started using the taxi app ended up using other Uber products, such as the delivery service. Uber Eats. .
The deal comes as Uber is battling a driver shortage caused by the pandemic, exacerbated by rising gas prices.
The merger will give drivers the ability to secure a return passenger when traveling to remote areas where they often return empty, which has become costly due to gasoline prices.
Last summer, New York City lost more than half of its yellow cabs in the past year, from 11,400 taxis in February 2020 to 4,900 in April 2021, according to The New York Post.
Drivers who left because of the pandemic are reluctant to return because they found work elsewhere or continue to receive unemployment benefits.
Russia’s escalating war in Ukraine has also contributed to rising US gas prices. The average price of regular gasoline in the US has risen 79 cents over the past two weeks to a record $4.43 per gallon (3.8 liters).
Earlier this month, gas prices rose to their highest level since 2008 as the war took a toll on the price of crude oil.
In response, Uber began charging customers new fuel fees to help offset the cost of drivers and delivery drivers.
The temporary surcharge will be 45 or 55 cents per Uber ride and 35 or 45 cents per Uber Eats order, depending on location, the company announced earlier this month.
All the money will go directly to drivers, Uber said, and is not intended to cover the entire cost of gas, but to “burden the burden.”
The surcharge will be valid for at least 60 days, after which Uber said it will evaluate gas prices and the mood of drivers.
The surcharges are based on average trip distance and gas price increases in each state, Uber said.
The collaboration comes after years of rivalry between the taxi industry and ridesharing companies, which have been accused of driving down the cost of taxi medallions.
Because taxi drivers in New York City are required to own them, the medallions were once extremely valuable and coveted because the demand for taxis was stable.
But in the years since Uber and the like changed the industry, the value of the medallion has dropped from $1 million to $200,000.
Drivers at Uber and other app companies don’t need medallions, and many taxi owners who thought their medallions would continue to rise in value say they now owe hundreds of thousands of dollars.