Uber Surrenders Its War Against New York City Taxis

Despite initially launching as an alternative to traditional taxi cabs, Uber has now partnered with two companies to allow New Yorkers to order a yellow taxi via the Uber app.

The New York Times reports that when Uber launched in New York City in 2011, it quickly went to war with the local yellow taxis. The Silicon Valley startup portrayed the traditional taxi services as greedy and corrupt, even calling them a “cartel.”

NEW YORK, NEW YORK – SEPTEMBER 24: Dara Khosrowshahi, CEO, UBER, speaks onstage during the 2019 Concordia Annual Summit – Day 2 at Grand Hyatt New York on September 24, 2019 in New York City. (Photo by Riccardo Savi/Getty Images for Concordia Summit)

An Uber sign is displayed inside a car in Palatine, Ill., Thursday, Feb. 10, 2022. Uber has reached a deal to include New York City taxi cabs on its app, a move that will help to boost driver availability for passengers and open up a new set of customers for cab drivers. (AP Photo/Nam Y. Huh)

In response, the taxi industry accused Uber of destroying the livelihoods of drivers with low wages. Now, the company appears to have conceded in the battle for New York City, announcing a partnership with two taxi companies, Curb and CMT, that will allow New York City citizens to order yellow taxis via the Uber app.

The announcement is the first large-scale agreement of its kind in the United States. Bruce Schaller, a former city transportation official, commented: “On the one hand, Uber and yellow cab seem completely like water and oil. On the other hand, when you go hail a cab or go to your smartphone to get an Uber, it will be the same experience as it was before. So it’s kind of like a big change and the same thing all at once.”

Beginning this Spring, Uber users will be able to choose a yellow taxi as an option from the Uber app. Uber will refer the request to the two taxi companies which will notify drivers to pick up the riders. The fare will still be based on Uber’s current pricing and policies, including surge pricing.

Tom White, a senior research analyst with the financial firm D.A. Davidson, commented that the newly announced partnership “would seem to reflect a new page or a new stance in Uber being willing to work more closely with the industry that it was once trying to disrupt.”