Uber, cab companies to form alliance
Multi-year agreement will allow taxi drivers in Southland to service ride-share referrals
Uber has forged a ride-sharing partnership with Los Angeles Yellow Cab and its five partner taxi fleets in Southern California that will allow taxi drivers to service Uber trip referrals.
The multi-year agreement is designed to give cab drivers more earning opportunities while providing faster pickups for riders, Uber said.
The Southern California partnership includes Los Angeles Yellow Cab, Long Beach Yellow Cab, San Diego Yellow Cab, California Yellow Cab, Fiesta Taxi Cooperative, Inc. and United Checker Cab.
Uber recently implemented similar partnerships in San Francisco and New York. A report from the San Francisco Municipal Transportation Agency shows cab drivers there averaged $1,767 a month from Uber rides during the second quarter of 2023, boosting their pay by 23.8% more on average than taxi drivers who didn't provide Uber trips.
The data was compiled from 41,639 “pilot” trips provided during the second quarter. Uber referrals accounted for 7.3% of the total taxi trips, the report said, with 378 taxi drivers participating in the program.
“An analysis of the geographic distribution of third-party pilot trips indicates that these trips are helping to extend the density of taxi pick-ups to outer neighborhoods in San Francisco that have historically been underserved by the taxi industry,” the study said.
The six taxi companies collectively operate about 1,200 cabs and provide service throughout Los Angeles, Orange and San Diego counties from the U.S./Mexico border to north L.A. County.
Onboarding for taxi drivers will begin this week, and once they're fully integrated they'll be eligible to receive Uber trip referrals, the company said.
Aydin Kavak, a long-time owner-operator with Yellow Cab of Los Angeles, applauds the partnership.
“Uber's ride referrals are going to help fill in our slower times and keep the drivers busy making money,” he said. “Drivers are going to benefit from this partnership for a long time to come.”
Riders will always be notified if they're matched with a taxi, Uber said, and they'll have the option to decline the match and get rematched with a driver who's not in a taxi — or they can simply cancel their ride.
Passenger fares will be the same whether the customer rides in an Uber or a taxi, Uber said, and cab drivers can choose not to participate in the program if they wish.
Nicole Moore, president of the advocacy group Rideshare Drivers United, said many taxi drivers will likely opt out of the program once they see the kind of wages Uber drivers earn.
“Most Uber drivers have reported a 50% drop in pay over the past two years,” she said. “Drivers who have been with the company for a long time started out making $1.20 to $1.80 a mile, plus surge bonuses. But over the past five years that has dropped to 60 cents a mile.”
William Rouse, CEO of the taxi operations, called the Southern California partnership a “winwin” for drivers and riders.
“We anticipate that this partnership will have a positive impact for our driver-owners as the pandemic recovery continues,” Rouse said in a statement. “No longer will drivers have to worry about finding a fare during offpeak times or getting a street hail back into the city when in the outer suburbs.”
Camiel Irving, general manager of U.S. & Canada Mobility at Uber, said the company plans to expand the program.
“We're encouraged by the support from local regulators in California and look forward to continuing to work closely with our taxi partners to bring the benefits of this program to more taxi drivers and cities throughout the country,” Irving said in a statement.