Soon, Uber will list New York City’s famous yellow cabs in its app in a new groundbreaking deal, reports the Wall Street Journal. With this new partnership, Uber adds up to 14,000 taxis to its fleet of ride options in NYC.
Part of the deal requires the city’s technology providers to sync its systems with Uber. Currently, customers can hail NYC cabs via smartphone apps. Doing this opens up the floodgates of Uber’s ever-growing userbase to cab drivers in the city.
So, how does pricing work? According to WSJ, riders will pay just about the same price for a taxi ride as they would for Uber X rides. But, of course, how a driver gets paid is a whole different story. The Verge sums it up nicely here:
“Uber drivers in New York City are paid under a formula that uses a so-called utilization rate, which accounts for the share of time a driver spends with passengers in their vehicles compared to time spent idle and waiting for a fare. Taxi drivers who accept Uber customers will be paid under the same rate.”
Naturally, Uber and its taxi partners will get a cut of the fare, although the companies aren’t saying exactly how much they’re each getting.
For a company that once declared taxi cabs its enemy, this is a radical change from former CEO Travis Kalanick’s vision of the company. What was once viewed as a competitor, taxi cabs could soon be a huge growth tool to Uber’s future.
Have any thoughts on this? Let us know down below in the comments or carry the discussion over to our Twitter or Facebook.