Uber has entered into a groundbreaking agreement with Los Angeles Yellow Cab, allowing traditional taxis to pick up Uber passengers in Southern California. This partnership, which also includes five other affiliates in the area, follows similar trials in New York City and San Francisco. Both sides see the collaboration as mutually beneficial, with taxi drivers gaining access to Uber referrals and riders potentially experiencing faster pickups. The deal involves 1,200 vehicles from various taxi companies, and onboarding for taxi drivers in Los Angeles, Orange, and San Diego counties will begin this week.
For years, the relationship between ridesharing companies and traditional taxi businesses has been marked by animosity and conflict. Since the inception of Uber and Lyft in the early 2010s, the taxi industry has felt threatened by these new competitors. However, Uber argues that their partnership with taxi drivers in New York City and San Francisco resulted in significant financial benefits, with cab drivers earning an additional $1,767 per month from ridesharing fares alone. This collaboration with Los Angeles Yellow Cab signifies a shift in the dynamic between the two sides.
Yellow Cab of Los Angeles CEO William Rouse expressed his excitement about the partnership, emphasizing the positive impacts it will have on drivers and riders. He believes that this alliance will alleviate concerns for drivers during off-peak times and when venturing into the outer suburbs. As the pandemic recovery continues, the collaboration with Uber is expected to support the revival of the taxi industry and offer a more reliable transportation experience for passengers in Southern California.