Uber partners with Los Angeles Yellow Cab to boost taxi supply on platform

Uber Technologies announced on Tuesday a new partnership with Los Angeles Yellow Cab and its affiliates to increase the number of taxis available on its ride-hailing platform.

This move is part of Uber's ongoing effort to strengthen its ties with the traditional taxi industry, which had faced significant challenges from the emergence of ride-hailing startups over a decade ago.

Expanding its successful model of securing similar tie-ups in global markets, Uber aims to deepen its connection with taxi companies and operators worldwide. The recent partnership with LA Yellow Cab and its five affiliated fleets marks another significant step in this direction.

Under the new collaboration, taxis associated with LA Yellow Cab, as well as San Diego Yellow Cab, California Yellow Cab, Long Beach Yellow Cab, Fiesta Taxi Cooperative, and United Checker Cab, will now receive bookings through the Uber app. This integration will bring an additional 1,200 cabs to the Uber platform, further increasing the company's overall supply and improving accessibility for riders.

Following a challenging period due to the COVID-19 pandemic, Uber has made a strong recovery, benefiting from the resumption of inter-city travel and holding a higher market penetration compared to its closest competitor, Lyft. Uber's ability to bounce back can be attributed to its adaptability and strategic partnerships, as demonstrated by this latest collaboration in Los Angeles.

Ride-hailing firm Uber have made no secret that they are looking to add ALL licensed taxis onto its platform by 2025, having set their sights on French cabbies at the backend of 2022.

The ride-hailing firm are now firmly focused on existing taxi markets around the world to help solve coverage and availability issues.

Within the financial report for Q2 2022, Uber stated it had reached an agreement to list New York City and San Francisco taxis on the Uber app through partnerships with CMT, Curb, Yellow Cab SF, and Flywheel Technologies. Interestingly it was revealed that Uber plan to bring EVERY taxi on to Uber by 2025 as part of its long-term vision.

In their Q3 2022 report, Uber also listed entry into new taxi markets including Paris, France; the Ota Ward of Tokyo and Okinawa, Japan; Brussels, Belgium; and Mendoza, Argentina.

However in the UK, and particularly in London, it may be a tough sell. Since their arrival in the UK private hire vehicle (PHV) sector back in June 2012, it has been a rocky relationship with both the taxi industry and existing PHV operators.

Uber have had some success in their ‘Local Cab’ option which has allowed regional PHV operators to appear on the Uber platform.

The licensed taxi industry has seen a renaissance despite the uncertain economic climate since restrictions were dropped post-pandemic. Even established black cab apps are struggling to recruit drivers to fulfil their demand for journeys due to high on-street demand.

Responding to an interview appearing in the Telegraph, an LTDA spokesperson said in TAXI Newspaper: “Last week, Uber’s new boss in London, Andrew Brem, suggested that he would like to see the option to book licensed taxis back on the Uber app. Most people will remember how tough things were for the cab trade in 2015 at the height of Uber’s invasion of London.

“Some will also remember how the minicab app tried and failed to recruit taxi drivers to work on the platform back then. A few butter boys and a couple of others did make the rookie mistake of signing up, but it didn’t last long, and Uber soon removed the option.

“Now, in an interview in the Telegraph, Brem, has said he would like to see it happening in London again. We all know this will never happen in London, but it seems now they are struggling to compete, having been forced to raise their prices (from the heavily subsidised, artificially low fares we saw back in 2015), they are considering their options. No thanks, Uber.”