Uber announced Tuesday that it’s struck a deal with Los Angeles Yellow Cab to deploy taxi fleets across Southern California. The multi-year partnership, also extending to five other SoCal affiliates, will allow traditional yellow taxis to pick up Uber passengers. The collaboration between the strange bedfellows follows similar trials in New York City and San Francisco.
Uber describes the alliance as mutually beneficial for all parties. Taxi drivers, struggling to recover from pandemic losses while competing with ridesharing, get access to Uber referrals. Meanwhile, riders could see faster pickups. (They can opt out of yellow taxis in the app if they prefer typical ridesharing cars.) And, of course, Uber gains a greater supply of rides.
The partnership stretches down the SoCal coast to the Mexico border. It includes 1,200 vehicles from Los Angeles Yellow Cab, San Diego Yellow Cab, California Yellow Cab, Long Beach Yellow Cab, Fiesta Taxi Cooperative, Inc. and United Checker Cab. Onboarding for taxicab drivers in Los Angeles, Orange and San Diego counties begins this week. Once fully onboarded, drivers can start accepting trips at UberX prices.
The unusual pairing follows years of contentiousness between ridesharing and traditional taxi businesses. The two sides have often been at war since the early 2010s when Uber and Lyft’s existence began threatening the taxi industry. Uber claims cab drivers who took ridesharing fares in the NYC and SF pilots raked in an extra $1,767 per month from those trips alone and earned 23.8% more on average than taxi drivers who eschewed Uber.
“We are thrilled to announce this partnership with Uber because it’s a clear win-win for drivers and riders,” said William Rouse, CEO of Yellow Cab of Los Angeles. “We anticipate that this partnership will have a positive impact for our driver-owners as the pandemic recovery continues. No longer will drivers have to worry about finding a fare during off peak times or getting a street hail back into the city when in the outer suburbs.”