Uber has thrown its differences with local taxi operators in New York away to onboard them into its ride-hailing app. The ridesharing giant reached an agreement to integrate New York City’s yellow taxis, in a first-of-its-kind deal that will see about 14,000 taxi drivers receive ride requests through Uber Driver’s app.
The WSJ reported that under the deal, the city’s licensed technology providers, Curb Mobility and Creative Mobile Technologies, will integrate their software with Uber. Yellow cabs, which can be hailed using smartphone apps owned by the two companies, will gain access to Uber’s much larger customer base, which could translate into higher trip volumes and more money for beleaguered cab drivers.
The new deal marks a significant shift in the rivalry that has characterized Uber and local taxis coexistence in New York, and signals a new approach to the ridesharing company’s business sentiment.
Uber has faced rising disobedience from drivers demanding better welfare. In California, its largest market, the company narrowly escaped the AB 5 employment law designed to ensure minimum wage besides other workers’ benefits for gig workers. Coinciding with the pandemic which dealt a heavy blow to the ride-hailing business, Uber was confronted with the harsh reality of shortage of drivers which has been compounded by the mass resignation of workers, affecting almost every sector of the American economy right now.
The idea to integrate local New York taxis into its system suggests that Uber is looking to fill the gap in its business created by waning driving interest. While Uber has partnered with the taxi industry in countries around the world, including Spain, Columbia, Turkey, Germany, Austria, South Korea, and Hong Kong, the company had little or no aggravated feud with them compared with New York. New York City’s taxis’ and Uber ending their longstanding animosity post-covid movement restrictions suggests that the integration has been borne out of desperation to survive.
Uber co-founder and former CEO Travis Kalanick once described his primary competitor as “an asshole named Taxi.” Headwinds from new regulatory policies targeting the gig business model and drivers attitude is forcing a change in Uber’s view of taxis. Now the company sees taxis as partners not competitors, and hopes to eventually include every taxi in the world on its app.
For the taxis, who have been reeling on the mercy of Uber and other ride-hailing companies, the idea is much more than a consolidation of cab transport service in New York. It will help the competitors sheath their drawn swords while they help each other to stay in business.
“Our partnership with Uber is a natural step forward in the expansion of ground mobility and, as a driver-first company, we will remain committed to our taxi drivers and fleets as we work with Uber to generate enhanced stability and financial wellness for members of the taxi industry,” said Amos Tamam, CEO of Curb, in a statement.
Andrew Macdonald, SVP, mobility and business operations, said in a statement: “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.”
The integration is part of Uber’s recovery plan from pandemic-induced strains that plummeted its revenue. As economic activities resume across cities in the US, the yellow taxis are also hoping for a rebound, and believe the Uber partnership will help.
“Our partnership with Uber is a natural step forward in the expansion of ground mobility and, as a driver-first company, we will remain committed to our taxi drivers and fleets as we work with Uber to generate enhanced stability and financial wellness for members of the taxi industry,” said Amos Tamam, CEO of Curb, in a statement.
