US: Uber adds all New York City taxi cabs to its app after years of rivalry

Due to driver shortages and an increase in food delivery requests during the pandemic, Uber will now put New York City taxi cabs on its app, reported Wall Street Journal, a cooperation that would have been inconceivable until recently, given the fierce competition between the two companies for the same clients.

Move initiated to increase the number of available trips

Following a period in which Uber ride wait times increased due to a driver scarcity, the agreement will increase the number of trips available and provide NYC cab drivers with access to a large pool of commuters who have downloaded the Uber app to their phones.

Uber's expansion into the food delivery market

As Uber aggressively expanded into the lucrative food delivery market and needed a rising number of delivery drivers, tensions between Uber and taxi firms appeared to be thawing.

As millions of people sought refuge at home during the pandemic, Uber's food delivery outperformed human rides. In the fourth quarter of 2021, Uber's gross bookings for delivery services totalled $13.4 billion. In comparison, Uber rides generated $11.3 billion in gross bookings.

The agreement, which was announced on Thursday, comes as more governments seek to control the exponential development of Uber and other app-based transport services, including New York City, which in 2018 imposed a temporary cap on new ride-hailing permits. Uber's largest market in the United States is New York City. The New York City Workers Alliance, which represents taxi drivers and has been sceptical of Uber and other ride-hailing apps, has stated that it will push for talks.

"After its business model failed to safeguard drivers from downturns in ridership and rising gas prices, Uber is reverting to its roots: yellow cabs," said Bhairavi Desai, executive director of the NYCWA, in a prepared statement on Thursday.

Uber partnerships with other players

For some years, Uber Technologies Inc. has been integrating cab drivers from all around the world into its system. The company has cabs in Madrid, Málaga, Valencia, and Barcelona in Spain. It's partnered with TaxExpress in Colombia, which has over 2,300 active drivers. The TaxExpress collaboration in Colombia accounts for half of all Uber taxi trips in Latin America. In Austria, Germany, Turkey, South Korea, and Hong Kong, Uber has partnerships with taxi software and fleet operators.

The New York City Taxi and Limousine Commission said on Thursday that it is continuously looking for methods that can help drivers earn more money.

"Any suggestion to make it easier for consumers to connect with cabs excites us," said Ryan Wanttaja, acting commissioner. "We look forward to learning more about this partnership between Uber and the taxi apps and ensuring it complies with TLC laws."