Ride-hailing giant Uber Technologies Inc. has inked a partnership with New York City taxis to list all their units on its mobile application, according to a WSJ report.
- Under the agreement, technology partners of the New York City Taxi and Limousine Commission will integrate their taxi-hailing applications’ software with Uber. This will cover some 14,000 taxis in the city.
- Both parties have enabled credit-card payment for taxis, along with screens available in the units which display the prevailing weather conditions, news, and advertisements to the riders.
- Passengers are expected to pay roughly the same fare for taxi rides as Uber X rides, with Uber drivers in New York receiving a minimum time and distance rate set by the commission.
- Both parties will take a cut of the fare, but declined to specify the terms of the agreement. Uber’s average global cut rate for rides in the last three months of 2021 was 20%.
The agreement marks Uber’s first citywide partnership in the United States, with New York being a main area of competition with the iconic yellow taxis in the past years. UBER is up 5.57% premarket.