Uber Technologies (NYSE:UBER) stock is on the move Thursday as investors react to news of a massive New York City taxi deal.
Let’s get into that news and everything potential investors in UBER stock need to know about it below!
- Uber has signed a deal that allows it to list all taxis in NYC on its app.
- This will have Curb Mobility and Creative Mobile Technologies, the licensed technology providers for NYC, integrating their tech into the Uber app.
- That will result in some 14,000 taxis being added to the ride-hailing service.
- It also opens up those drivers to receive tips from Uber customers.
- The deal makes it so Uber passengers will pay the same for a taxi as they would a lift through the ride-sharing service.
- However, one difference is that taxi drivers will see an estimated fare price for the trip.
- This allows them to reject any others that they don’t deem worth their time.
- As part of the agreement, these cab drivers will also give up a portion of their earnings to Uber.
- The deal allowing taxis on the Uber app is a major shift from the previous competitive nature between the two businesses.
- Even so, it’s more of a necessity for taxi drivers than Uber.
- The industry has been suffering ever since the ride-sharing service entered the scene around 10 years ago.
- While taxi drivers have tried different methods to better compete with Uber, the company continued to chip away at their business.
- With today’s deal, taxi drivers may see an increase in business, and Uber will see more profits, which would be a win-win situation.
UBER stock is up 2.3% as of Thursday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.