After a period in which waits for an Uber
ride grew longer due to a driver shortage, the partnership will boost the
number of rides available, and it gives NYC cab drivers access to a massive
pool of commuters with an Uber app on their phones.
There had been hints tensions between Uber
and taxi services had begun to thaw as Uber expanded aggressively into the very
lucrative food delivery business and needed a growing supply of delivery
drivers.
During the pandemic, Uber's food deliveries
outpaced rides given to humans as millions sheltered at home. Gross bookings
for delivery services at Uber reached $13.4 billion in the final quarter of
2021. That's compared with $11.3 billion in gross bookings for Uber rides.
The agreement announced Thursday comes amid
the back drop of more cities moving to regulate the explosive growth of Uber
and other app-based ride services, including New York City, which placed a
temporary cap on new licenses for ride-hailing services in 2018.
New York City is the largest American
market for Uber. The New York City Workers Alliance, a group that represents
taxi drivers and has been critical of Uber and other ride-hailing apps, said it
would push for negotiations.
“After its business model has shown the
failures to protect drivers from ridership downturns and rising gas prices,
Uber is returning to its roots: yellow cabs,” Bhairavi Desai, the executive
director of the NYCWA, said in a prepared statement Thursday.
The New York City Taxi and Limousine
Commission said Thursday that it's always interested in tools that can provide
more economic opportunities for drivers.
“We are excited about any proposal to more
easily connect passengers with taxis and look forward to learning more about
this agreement between Uber and the taxi apps and ensuring it complies with TLC
rules,” said Ryan Wanttaja, acting commissioner.
One industry analyst who follows Uber
closely went so far as to call the marriage of longtime competitors “pure
genius." Uber lacked drivers in New York City and taxi drivers lacked the
business due to the popularity of ride-hailing apps.
“I think they realized that they both need
each other over the short term, ” said Bill Selesky, senior analyst for Argus
Research.
Uber has incorporated taxi drivers around
the world into its system for the past several years. In Spain, the company has
integrated taxis in Madrid, Malaga, Valencia and Barcelona. It's teamed in
Colombia with TaxExpress, which has more than 2,300 active drivers.
Half of all Uber taxi trips in Latin
America come from the TaxExpress partnership in Colombia. Uber also has
relationships with taxi software and fleet operators in Austria, Germany,
Turkey, South Korea and Hong Kong.
In New York City, Uber is teaming with tech
platforms Creative Mobile Technologies and Curb to eventually have all New York
City taxi cabs available on its app.
Anyone with the Uber app will have access
to thousands of yellow taxis that operate on the CMT/Arro platform. Taxi drivers
will see Uber-originated fares on their driver monitors which they already use
to service e-hails from the Arro taxi app.
“Uber has a long history of partnering with
the taxi industry to provide drivers with more ways to earn and riders with
another transportation option.
Our partnerships with taxis look different
around the world, and we're excited to team up with taxi software companies CMT
and Curb, which will benefit taxi drivers and all New Yorkers,” Andrew
Macdonald, senior vice president, Mobility and Business Operations, at Uber,
said in a prepared statement.
Creative Mobile Technologies said Thursday
that taxi drivers on its platform, which includes the taxi app Arro, will gain
access to Uber's customer base, giving them the opportunity for a higher volume
of trips and expanded revenue.
Creative Mobile said a beta version for
taxis will be rolled out this spring and reach the general public this summer.
Curb, which offers a ride-hailing app for
licensed taxi and for-hire rides in North America, said the new agreement with
Uber will start in New York City, but that the partnership will expand to its
nationwide network over the coming months.
Drivers on the Curb platform will be able
to receive and accept Uber trip offers through their existing in-vehicle
systems, in addition to Curb app demand and traditional street hails.
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