Uber, hit by driver shortages and a surge in food delivery requests during the pandemic, will list New York City taxi cabs on its app, a partnership that until recently would have been unthinkable with both camps fighting ferociously for the same customers.
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...
