Uber has developed a strategy that has allowed them to forge a partnership that will prove to be financially conducive for New York City's taxi cab drivers, as well as extending service availability to their passengers. The days that are long gone still hold the memory of a once unconceivable partnership between Uber and New York City Taxi cabs combining resources, especially when both entities were in a ferocious fight for the same customers. The city has for years been a battleground between Uber and yellow cab drivers, who have long opposed Uber for diminishing their earnings, Reuters reports.
In present day post-pandemic reality, where Uber's food delivery service has become a main stay after its tremendous rise of necessity during the pandemic, as well as an alternative to mass transit for cautious residents who preferred the privacy of a car service, to the wide availability of potential carriers of the most feared Covid -19 virus where the number of deaths over reached the 100,000 mark; This strategic partnership of necessity seems to be the obvious answer for Uber's latest expansion into the US taxi market. This move could help the ride-hailing giant overcome the heavy demand on its well-oiled business wheel, which has caused delays in its service due to a shortage of drivers in its biggest U.S. market.
Uber's trajectory of the taxis market is one of a major growth opportunity, calling it a highly fragmented $120 billion industry with 20 million active vehicles - more than five times the number of Uber's own pre-pandemic vehicle base, Uber reports. Continuing- Uber revealed, it planned to include every taxi on its Uber app by 2025 and last year added 122,000 new taxis to its platform, which represented 3% of its total driver base at a time when it was struggling to retain its usual gig drivers amid the pandemic. The New York City collaboration could add as many as some 13,600 cabs to Uber's app if all of the city's registered cab drivers participate.
The deal, first reported by the Wall Street Journal, would see Uber work with taxi software companies Creative Mobile Technologies and Curb, which said its goal was to expand the collaboration U.S.-wide. Passengers will pay roughly the same fare for taxi trips as for Uber X rides, but taxi drivers will be paid according to New York's ride-hail wage standards, which on average are higher than the metered rates, Curb said, Reuters reports.
Uber said it has already integrated taxis in Spain, Germany, Austria, Turkey, South Korea, Hong Kong and Colombia. Thirty-five percent of users who come to Uber taking a taxi trip go on to use its other mobility products, the company said in February.
"When we look at the next five years, we just don't see a world in which taxis and Uber exist separately. There's too much to gain for both sides," Andrew Macdonald, Uber's senior vice president of mobility, said at the time.