Uber Technologies (NYSE: UBER) made a groundbreaking new deal this past Thursday to start listing New York City taxi cab rides on its app.
Two taxi apps, run by the companies of Curb and Creative Media Technologies, will combine their software with that of Uber, which will then permit users to book taxi rides on the app. The feature is anticipated to come out later on in the spring.
"This is a real win for drivers - no longer do they have to worry about finding a fare during off peak times or getting a street hail back to Manhattan when in the outerboroughs," Guy Peterson, Uber's director of business development, said in a press statement. "And this is a real win for riders who will now have access to thousands of yellow taxis in the Uber app."
With the new feature, riders will have to pay the same amount of money as they typically would for an Uber X trip, reported Uber. In New York City, Uber drivers are paid according to a structure that involves a "utilization rate," which allots for the amount of time that a driver spends with riders, as opposed to time spent waiting without any riders in the vehicle.
On a global level, taxi drivers have been speaking out against Uber for causing their market to go downhill. As soon as COVID-19 hit, taxi drivers in New York City especially were affected dramatically, in a negative way. Although the city attempted to establish a program that would assist with debt, drivers went on a hunger strike to seek out even more help in October 2021. But now, since the impact of COVID-19 has diminished significantly, the collaboration between Uber and New York City taxi systems could very well be revolutionary.
"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," Andrew Macdonald, SVP, mobility and business operations at Uber, said in a press 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."