On Thursday, Uber Technologies Inc. said that it will now include New York yellow taxi cabs on its app following a driver shortage. In the US, both prominent driving share apple, Lyft and Uber, face a drivers shortage following the decline in travel due to COVID-19. The decline in drivers has pushed rideshare apps to raise their prices for rides. According to Rakuten Intelligence, rideshare apps like Uber and Lyft increased prices between January 2018 and July 2021 by 92% and are still climbing today. The integration of New York City Taxi and Uber is said to solve the driver shortage that the popular rideshare app is facing.
Roughly 14,000 taxis will be allowed to accept trip requests from Uber customers, leading to more money and higher trip volumes for struggling taxi cab drivers. The impact of the introduction of rideshare apps like Uber and Lyft to New York City has caused nearly thousands of taxi cab drivers to file bankruptcy. Moreover, the taxicab industry tried numerous times to replicate the rideshare apps and algorithm but ultimately failed, causing a decline in New York City, taxi cab drivers.
Two apps known for hailing taxis will merge their software with Uber to create a more user-friendly, all-in-one experience for people looking to book cabs. According to Uber, they expect the new integrated software to launch later this spring. In a statement to The Post, Uber’s senior vice president of business operations and mobility, Andre Macdonald, states, “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.” Macdonalds also adds, “Our partnerships with taxis look different around the work. We’re excited to team up with taxi software companies CMT and Curb, which will benefit taxi drivers and all New Yorkers.”
Dara Khosrowshahi, CEO of Uber, has recently mentioned last month that they are even considering introducing more taxis on the Uber App in other US cities besides New York City. This new software feature of taxi cabs isn’t new to other countries, including Germany, South Korea, and Spain.
