Uber Forms Partnership with Los Angeles Yellow Cab and Taxi Fleets to Enhance Ride-Sharing
In a move to provide additional earning opportunities for cab drivers while ensuring faster pickups for riders, Uber has established a ride-sharing partnership with Los Angeles Yellow Cab and five other Southern California taxi fleets. This multi-year agreement enables taxi drivers to cater to Uber trip referrals, further expanding the reach of the ride-sharing service.
Joining forces with Los Angeles Yellow Cab, Long Beach Yellow Cab, San Diego Yellow Cab, California Yellow Cab, Fiesta Taxi Cooperative, Inc., and United Checker Cab, Uber has previously implemented similar partnerships in San Francisco and New York. According to a report from the San Francisco Municipal Transportation Agency, cab drivers in San Francisco generated an average of $1,767 per month from Uber rides during the second quarter of 2023. This resulted in a 23.8% pay increase compared to taxi drivers who did not provide Uber trips.
Data collected from 41,639 “pilot” trips conducted during the second quarter reveals that Uber referrals accounted for 7.3% of the total taxi trips, with 378 taxi drivers participating in the program. The report also highlighted how this collaboration facilitated the distribution of taxi pick-ups throughout previously underserved neighborhoods in San Francisco. With around 1,200 cabs collectively operated by the six taxi companies, Uber’s collaboration extends across Los Angeles, Orange, and San Diego counties, spanning from the U.S./Mexico border to north L.A. County.
Onboarding procedures for taxi drivers will commence this week, and once fully integrated, they will become eligible to receive Uber trip referrals. Aydin Kavak, a long-time owner-operator with Yellow Cab of Los Angeles, applauds the partnership, stating that Uber’s ride referrals will help taxi drivers stay busy during slower periods, resulting in increased earnings.
Uber assures riders that they will always be informed if they are matched with a taxi. If they prefer not to ride in a taxi, they have the option to decline the match and be rematched with a driver who is not in a taxi, or they may choose to cancel their ride altogether. Regardless of whether the customer rides in an Uber or a taxi, passenger fares will remain the same.
However, not all taxi drivers are expected to participate in the program. Nicole Moore, president of advocacy group Rideshare Drivers United, predicts that many taxi drivers will opt out once they learn about the wages earned by Uber drivers. She highlights that most Uber drivers have experienced a 50% drop in pay over the past two years, with earnings per mile decreasing from $1.20-$1.80 to 60 cents.
William Rouse, CEO of the taxi operations, describes the partnership in Southern California as a “win-win” situation for both drivers and riders. He believes that this collaboration will benefit driver-owners, particularly as the recovery from the pandemic continues. The CEO is hopeful that drivers will no longer have to worry about finding fares during off-peak times or securing street hails when operating in the outer suburbs. Camiel Irving, general manager of U.S. & Canada Mobility at Uber, adds that the company plans to expand this program, working closely with taxi partners and local regulators in California to bring its advantages to more taxi drivers and cities across the country.
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