LOS ANGELES (KNX) — After priding itself on being different from taxi-based ride services, Uber Technologies Inc. has just announced that it is now partnering with drivers in that very industry.
“No need to try to hail a taxi from the curb. Request a ride from your phone with Uber Taxi,” the rideshare company writes on its website, adding that the drivers are licensed and local to each city and you can pay with cash or card.
The so-called “uberTAXI” is set to launch first in San Francisco and New York, with California city seeing the option available as early as next month or no later than August, according to MarketWatch.
In New York the feature is expected to launch this spring. The company said it’s still evaluating where else the feature might launch.
To make things clear, Uber has not partnered with a taxi company to launch its latest feature. Traditional taxi riders will still be able to call their rides, or hail a cab, the old fashioned way.
However, drivers participating with uberTAXI will also now appear in the Uber app, as an option for travelers in need of a ride. All at an Uber rate, according to MarketWatch.
Dennis Cinelli, Uber’s vice president of mobility for the U.S. and Canada, told the outlet in a statement that in San Francisco the move means taxi drivers have “more access to demand” and cities “will get fewer empty miles driven.”
While in theory it all appears to work out, critics say the taxi industry could suffer as a result.
“It’s hard enough to make a living with taxi fares,” Mark Gruberg, a taxi driver and board member of the San Francisco Taxi Workers Alliance, told MarketWatch.
He added that there’s little “detail and clarity” offered so far on how uberTAXI will work, which leaves taxi drivers facing two things when accepting Uber rides: highly beneficial “surge price” rates, which could earn them more — or lower-than-taxi fares offered to customers by Uber.
How uberTAXI works:
1) Request: In participating cities, uberTaxi will show up as another ride option for a user to select. Once matched, you’ll see your driver and can await the ride.
2) Ride: It’s business as usual while using the taxi feature, and user whereabouts can be shared with family and friends while on the way to your destination. Ride fares may also be split if riding with another person.
3) Exit: The payment on file with your Uber account will be charged upon exiting the vehicle.
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