To solve the problem of public transport in New York City, Uber announced on Thursday that they made a deal to allow yellow taxi drivers to take rides through Uber’s platform instead.
The deal is considered a game-changer since New Yorkers who hail a car through Uber’s car could get a yellow taxi instead of the unmarked cars that app-based drivers typically use.
The deal also signifies that yellow taxi drivers who take rides via Uber’s app will be paid an upfront fare instead of the standard meter rates that are regulated by the city’s Taxi and Limousine Commission.
According to reports, Uber’s amount yellow taxi drivers get paid only regulated through the TLC’s minimum wage rules set for for-hire vehicle drivers.
“Uber has a long history of partnering with the taxi industry to provide drivers with more ways to earn and riders with another transportation option,” Uber executive Andrew Macdonald said in a statement.
The NYC data shows that roughly half of the city’s 13,500 yellow taxis are out of service — and as the pandemic has shrunk ridership on app-based services like Uber and Lyft by more than 25%, from about 663,000 rides per day in January 2020 to 475,000 rides per day this year.