Uber
Uber

Uber partners with LA taxi companies to expand its fleet

What To Know

  • This extensive partnership, spanning multiple years and encompassing five other Southern California affiliates, facilitates the integration of traditional yellow taxis into the Uber platform, allowing them to serve Uber passengers.
  • It encompasses a total of 1,200 vehicles from Los Angeles Yellow Cab, San Diego Yellow Cab, California Yellow Cab, Long Beach Yellow Cab, Fiesta Taxi Cooperative, Inc.
  • Uber asserts that cab drivers who participated in ridesharing services during the NYC and SF pilot programs earned an additional $1,767 per month from these trips alone, surpassing the earnings of taxi drivers who chose not to work with Uber by an average of 23.
  • He anticipates that this collaboration will have a positive impact on driver-owners as the recovery from the pandemic continues, alleviating concerns about finding fares during off-peak hours or securing street hails when operating in suburban areas.

Uber’s recent announcement on Tuesday revealed a strategic agreement reached with Los Angeles Yellow Cab, aimed at deploying taxi fleets throughout Southern California. This extensive partnership, spanning multiple years and encompassing five other Southern California affiliates, facilitates the integration of traditional yellow taxis into the Uber platform, allowing them to serve Uber passengers.

This collaboration, perhaps unexpected due to their differing backgrounds, follows similar trials conducted in New York City and San Francisco. Uber characterizes this alliance as mutually advantageous for all parties involved.

In this arrangement, taxi drivers, grappling with the challenges of recovering from pandemic-related losses while simultaneously competing with ridesharing services, gain access to Uber referrals. Simultaneously, passengers may experience expedited pickup times, although they still have the option to choose conventional ridesharing vehicles through the app. Naturally, Uber also benefits by augmenting its supply of available rides.

This partnership extends along the Southern California coastline, all the way to the Mexican border. It encompasses a total of 1,200 vehicles from Los Angeles Yellow Cab, San Diego Yellow Cab, California Yellow Cab, Long Beach Yellow Cab, Fiesta Taxi Cooperative, Inc., and United Checker Cab.

The onboarding process for taxicab drivers in Los Angeles, Orange, and San Diego counties commences this week. Once fully integrated, these drivers will be able to accept trips at UberX rates. This unique collaboration follows years of tension between the ridesharing and traditional taxi sectors. Since the early 2010s, when Uber and Lyft first emerged, these two industries have frequently been in fierce competition.

Uber asserts that cab drivers who participated in ridesharing services during the NYC and SF pilot programs earned an additional $1,767 per month from these trips alone, surpassing the earnings of taxi drivers who chose not to work with Uber by an average of 23.8%.

William Rouse, CEO of Yellow Cab of Los Angeles, expressed enthusiasm about the partnership with Uber, emphasizing its unequivocal benefits for both drivers and passengers. He anticipates that this collaboration will have a positive impact on driver-owners as the recovery from the pandemic continues, alleviating concerns about finding fares during off-peak hours or securing street hails when operating in suburban areas.

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