The resolution will add 13,600 more cars to its network.
Uber's success since it officially started operations in 2012 has been admirable but also expected as it gave the average Joe a means of transport at the simple push of a button. It may not have taken to the skies, but with this simple but effective innovation, it has grown to be one of the most prominent companies operating in Silicon Valley. Looking forward, it has plans to revolutionize its ride-hailing services even further with plans of self-driving cars as previewed by the Volvo XC90 prototypes.
Despite its relevancy, it has been reported that the company is struggling with a shortage of drivers, particularly in New York. In a bid to combat this, Uber has announced that it will be partnering with the city's yellow cab industry. The company adds that it hopes to expand on this partnership throughout the country as it recognizes its expansive national network.
This move is a massive step in its initial plan of adding every taxi to its app by 2025. Just last year, we saw 122,000 additions representing a 3% share in its existing driver database. As a whole, it's estimated that there are 20 million active taxis in the country, all of which cater to a $120 billion industry. Partnering with the New York cab industry is expected to add about 13,600 cars to its network.
As reported by Wall Street Journal, to make this partnership viable, Uber will work with Creative Mobile Technologies and Curb which specialize in taxi software. The rides will be priced the same as what you would pay in an Uber X and the wages of the taxi drivers will be adjusted to the city's ride-hailing rates. These are said to be higher than the current metered wages.
It can be argued that this is somewhat of a strong resolution considering that the feud between New York's yellow cabs and Uber has been common knowledge. Traditional taxi drivers were not too pleased about the new ride-hailers having an impact on their profits. Of course, this isn't a surprise as taxi industries across the world have been at war with Uber for this very same reason.
Uber's strategy to integrate local taxi industries is a global effort having already formed partnerships in countries like South Korea, Colombia, Austria, Turkey, Spain, and Germany. Explaining the importance of this strategy is Uber's senior vice president of mobility, Andrew Macdonald, who says, "When we look at the next five years, we just don't see a world in which taxis and Uber exist separately. There's too much to gain for both sides."