For Uber, redemption is the best destination to reach by taxi. VTC will partner with New York taxis to make them available on their platform. High gas prices, which threaten Uber’s ability to recruit drivers, make it a good time to join forces with a once bitter rival.
Uber has partnered with taxi software companies CMT and Curb. Taxi drivers will be able to accept an Uber ride through the in-car dashboards, as well as view their portion of the fare and decline the request if they wish. Fares are set by the city’s taxi and limousine commission based on time and distance travelled, and drivers’ earnings will depend on those fares, according to Uber.
The increase in the cost of gasoline has put Uber under control. In the United States, the national average per gallon is about $4.24, according to the AAA, a nearly 50% increase from last year. The company added a temporary surcharge of up to 55 cents per trip, which was passed entirely to the customer to satisfy angry drivers.
Meanwhile, Uber’s mobility unit is finally out of the doldrums. In the fourth quarter, travel bookings rose 67% year-over-year to $11.3 billion, a faster pace than food delivery service Eats, which grew bookings at half that rate. Uber has about 4.4 million drivers worldwide, down from a pre-pandemic figure of 5 million. Those limitations may explain why the company’s $65 billion stock is down 25% so far this year, despite the surge in travel, more than three times the drop in the S&P 500.
Difficult times make alliances unbearable. Seven years ago, New York taxi drivers sued Uber, saying it destroyed their livelihoods. Now that drivers want passengers and Uber wants drivers, both sides have found a way to look on the bright side.
The authors are columnists for Reuters. Opinions are yours. The translation by Carlos Gomez Abajo is the responsibility five days
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