In an unlikely partnership between once-fierce rivals, Uber is now dispatching yellow taxis to some of its New York City customers. The app-hail company has been allowing New York customers to request a medallion taxi through its app since 2022, but in August, started automatically dispatching taxis to customers requesting an UberX, provided a cab is closer than an Uber vehicle.
Customers are notified if they are “matched” with a taxi, and can reject the ride, if they choose. Uber says the move will improve dispatching efficiency and reduce the time drivers spend cruising without a fare. It may also be a money-saver for riders in the long term, with congestion pricing looming. The program resulted from Uber’s partnership with medallion taxi apps, Curb and Arro.
Under the Taxi & Limousine Commission’s “Flexible Fare” pilot, taxi customers can see the fare upfront before making a purchase, like in an Uber or Lyft. Drivers are paid using Uber’s pricing structure, which follows the TLC’s per-trip rates, rather than a traditional meter. According to amNY, taxi drivers have been resistant to pick up rides through the apps, although fares are usually pretty similar, according to the TLC’s report on its flex fare pilot. Industry advocates say e-hails pay less than traditional meters, since Uber takes a fee and expenses are often higher in cabs than FHVs.
Source: amNY
