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Uber’s plans to list NYC taxis will offset driver shortages and allow it to evolve into a super app

The news: Uber is opening its ride-hailing ecosystem to New York City taxis to help offset driver shortage and rising fares, per TechCrunch. 

Here’s how it works: New York City riders will be able to hail taxi cabs right on the Uber app later this spring. The move helps alleviate Uber’s driver shortage and unlocks a new market for taxis, while laying the groundwork for Uber’s transformation into a super app—or a services ecosystem in a single app interface.

  • The partnership will work by integrating Uber’s software and app with taxi management software from companies like CMT and Curb, which are accessed by 14,000 New York cabs.
  • Taxi fares using Uber’s app will be priced the same as Uber rides. Cabs driving Uber customers will be paid the same rate as Uber drivers. 
  • One difference from regular Uber drivers is that taxi drivers will be able to see expected earnings before accepting rides. Profit-sharing structures were not disclosed.
  • Uber has existing partnerships with taxi operations in Spain, Austria, Germany, Colombia, and South Korea.

The bigger picture: Uber is reinventing itself into a super app that also handles groceries, ticket purchases, telehealth requests, and medical transportation.