Uber agrees to list all New York City taxis on its app

Company says it listed 122,000 taxis on its app in 2021 – four times more than in 2020

Related video: Ride-Share Drivers Strike Over Uber, Lyft Fuel Surcharges

Uber has agreed to list all New York City taxis on its app.

The deal comes amid a driver shortage for the ride-hailing service and could also mean more customers for taxi drivers after business slowed during the pandemic.

The Wall Street Journal first reported the news on Thursday.

It’s the first citywide deal of its kind in the US. Uber has made similar agreements with taxi operators abroad and riders can book taxis in multiple US cities if cab drivers have agreed to appear on the app.

New York is one of Uber’s most important areas for business and it has been a battleground between the company and the city’s yellow taxis.

Uber global mobility chief Andrew Macdonald said the deal is “bigger and bolder than anything we’ve done,” according to The Journal.

The deal is set to be put into action later this spring. The agreement means that the New York City Taxi and Limousine Commission’s (TLC) own ride-hailing software will be connected to Uber’s.

Uber says that the apps that will be connected to their own software are used by around 14,000 taxi drivers in New York City.

The fare for Uber X and taxis will be similar. New York City Uber drivers get a minimum time and distance rate established by the TLC, but Uber claims that its drivers tend to earn more.

Taxi drivers picking up Uber passengers will be paid using the same mechanism.

The taxi meters charges riders on a different calculus, meaning cab drivers can be paid more, less, or at the same level as Uber drivers depending on each individual journey.

Uber said taxi drivers will be able to see their estimated pay before a journey and may choose to decline if they don’t believe that it’s worth it.

Uber and its taxi partners will get a part of each fare, but the companies haven’t revealed the terms. Towards the end of last year, Uber’s global average take rate was 20 per cent.

Uber, who once wanted to disrupt the taxi sector, has said that they want to list all taxis in the world on its app by 2025. “It’s certainly ambitious,” Mr Macdonald said, according to The Journal. “I certainly think it’s possible.”

New York City deputy mayor overseeing the TLC, Meera Joshi, said the deal creates opportunities for cab drivers “without adding more and more cars”.

“The word ‘disruption’ was almost in some way a superficial word,” she added, noting that while Uber changed the business, it didn’t end the taxi sector.

Unions and taxi lobbyists in several countries have launched court cases that banned Uber and regulators have scrutinized its gig-work model. Cab drivers in cities like London, Paris, and Rome have protested against Uber.

Uber first began working with taxis abroad in markets where the company was struggling. It expanded the strategy when it helped its business grow, and Uber’s efforts to attract taxi drivers increased during the pandemic.

Uber says it listed 122,000 taxis on its app in 2021 – a four-fold increase compared to 2020.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in