Uber stock climbs on NYC taxi partnership

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Shares of Uber are trading higher Tuesday as the ride-hailing giant says it will start listing New York City taxis on its app. 

TickerSecurityLastChangeChange %
UBERUBER TECHNOLOGIES INC.34.40+1.34+4.05%

The surprising shift, which comes as Uber has faced opposition from taxi groups for years, is part of a partnership with taxi-hailing apps Curb and Creative Mobile Technologies to offer more transportation options for riders and more trips for drivers. 

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A beta for Uber's taxi rides will roll out to a limited number of New York City customers this spring before its official launch this summer. Taxi passengers will be charged around the same price as an Uber X ride, according to the company. 

Unlike Uber drivers, taxi drivers will be able to see what a trip will pay prior to accepting it. For the initial launch in New York City, drivers' earnings will be based on the Taxi and Limousine Commission's mandated for-hire vehicle (FHV) minimum rates. According to the company, taxi drivers will not be eligible for the recently announced fuel surcharge, as the FHV minimum reflects a 5.3% cost of living increase.

A beta for Uber’s taxi rides will roll out to a limited number of New York City customers this spring before its official launch this summer. Taxi passengers will be charged around the same price as an Uber X ride, according to the company.  (REUTERS/Lucas Jackson/File Photo)

"Uber has a long history of partnering with the taxi industry to provide drivers with more ways to earn and riders with another transportation option," Andrew Macdonald, Uber's senior vice president of mobility and business operation, told FOX Business in a statement. "Our partnerships with taxis look different around the world, and we’re excited to team up with taxi software companies CMT and Curb, which will benefit taxi drivers and all New Yorkers."

Other cities where Uber provides taxi service include Hong Kong, Berlin, Bogota, Cali, Barcelona, Madrid, Málaga, Valencia and Barcelona.

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Despite being slammed by driver shortages and soaring gas prices, Uber emphasized that it has more drivers in the U.S. now than at any other point during the coronavirus pandemic. It added that volatile fuel prices have not decreased the number of active drivers in the U.S. and Canada over the last several months. According to AAA, the national average gas price on Thursday hit $4.23 per gallon.

In the last three months of 2021, Uber passengers took 1.77 billion trips, or approximately 19 million trips per day on average, a 23% increase from the prior year. However, the figure remained below the 1.91 billion trips reported during the same period in 2019 before the pandemic.

FILE PHOTO: An Uber logo is seen on a car as it car drives through Times Square in New York City, New York, U.S., July 27, 2018.  (REUTERS/Mike Segar)

Uber shares spiked around 5% in premarket trading Thursday following the announcement. 

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