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United States – Uber makes peace with taxis in New York

Posted25 mars 2022, 00:26

United StatesUber makes peace with taxis in New York

After years of tension, the Uber platform will integrate the famous yellow taxis into its application in New York.

A yellow taxi in New York on March 24, 2022.

Getty Images via AFP

Uber will integrate all New York taxis into its platform, a turning point in its relationship with the famous yellow vehicles, after years of tension, and an illustration of the group’s growth strategy.

The giant passenger vehicles with driver (VTC) will welcome on its application the already existing New York taxi reservation software, which was until now competitors of Uber, a spokesperson told AFP, confirming information from the Wall Street Journal.

New York taxis could, in fact, already be ordered by dedicated applications, CMT, Arro and Curb. The fares for a taxi ride booked through the platform will be roughly the same as those charged for the basic Uber X formula, the group told the financial daily.

No marauding

Uber users will know, before booking, that a trip is offered to them with a taxi, and will know the price in advance, unlike a classic trip whose bill depends on the meter. Applications dedicated to taxis already offered to know the price in advance.

Taxi drivers will also see the fare in advance and will have the choice to accept or refuse it. Their remuneration will respect the legal minimum introduced by the city of New York for passenger vehicles with drivers (VTC) since 2018, said Uber.

New Yorkers will still be able to hail a taxi in the streets, yellow vehicles (and green for those operating outside Manhattan) remaining the only ones authorized for marauding, that is to say driving without a customer on board.

Growth strategy

“Any proposal to connect passengers more easily with taxis excites us,” reacted, in a statement sent to AFP, Ryan Wanttaja, head of the taxi regulatory authority in New York, the Taxi and Limousine Commission ( TLC).

“We look forward to learning more about this agreement between Uber and taxi apps, and ensuring that it complies with the rules of the TLC”, he nevertheless added, a sign that the regulator had not not been consulted beforehand on this agreement. The arrival of Uber in New York in 2011 transformed the transport industry, as in many other cities around the world, and put pressure on yellow taxis, which had hitherto benefited from a quasi- monopoly.

The city has since seen the number of taxis remain almost unchanged, around 14,000, but that of VTCs explode, to the point that the municipality had to freeze, in 2018, the granting of licenses, the number of which had exceeded 120′ 000. The coronavirus pandemic and the fall in traffic subsequently particularly penalized New York taxis, already in difficulty.

Unlike VTC drivers, taxi drivers have most often bought their license at a very high price, sometimes several hundred thousand dollars, many taking out large loans to do so.

(AFP)

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