The back of the Yellow Cab may soon be occupied by New Yorkers looking to catch an ride. The yellow cabs of New York City will be listed on the ride-sharing giant's app. The Wall Street Journal reported on Thursday that the agreement was one of the most significant partnerships between New York's taxis and the ride-sharing company. Remember, the company says it is not a transportation company. Right. The New York City Taxi and Limousine Commission will use Curb and CMT's ride-sharing technology. That will add around 14,000 taxis to the fleet, a huge gain, as the industry struggles with driver shortages caused by the Pandemic. Passengers should expect the same fare when the service launches. Taxi drivers who respond to requests using the app will have the option to confirm or reject the trip. Taxi drivers have the ability to see fares ahead of time and decline rides they don't think are worth it. Cab drivers can refuse to use the app and pick up riders on the street. It isn't all good news for drivers. Taxi drivers who provide services through the app won't be eligible for the fuel surcharge. It isn't free for the company to do any of this. The exact percentage of each ride will be taken by the company and taxi partners. When Gizmodo asked for details about the new agreement, the company didn't reply.
In an email to Gizmodo, the company described the deal as a win-win, providing riders more vehicle options to choose from on the one hand while simultaneously exposing drivers to more rider demand on the other. This is the first of its kind in the U.S., but the company said it works with taxi software and fleet operators in dozens of countries and sees them as key to opening up new markets. That is ironic coming from a company that once wanted to destroy the industry. In the next five years, the company says it wants to list every taxi in the world on their app.
Andrew Macdonald, Senior Vice President of Mobility and Business Operations, said in a statement that the company has a long history of partnering with the taxi industry to provide drivers with more ways to earn and riders with another transportation option.
According to a lobbying disclosure spotted by The New York Post, the efforts to add NYC taxi cabs to its apps date back to at least last September. In the past, riders were able to select yellow cabs from the app, though earlier efforts were subject to several lawsuits.
The relationship between New York's cab industry and the Silicon Valley-based app is changing. When it first arrived on the city streets, New York fought to impede its growth. For the first time in 2017, yellow cabs were surpassed by the ride-sharing service.
The national labor shortage has caused problems for the ride-sharing service as of late. According to research from Gordon Haskett, the number of unique rideshare drivers was down 45% in January compared to August. The new yellow cab drivers will accelerate the recovery of the company.
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