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Due to a driver scarcity, Uber is considering dispatching yellow cabs through its app.

Due to a driver scarcity, Uber is considering dispatching yellow cabs through its app.

Due to a driver scarcity, Uber is considering dispatching yellow cabs through its app.

In addition to its typical private hire choices, Uber is looking into the idea of dispatching New York City's renowned yellow cabs through its app.

According to a September city lobbying disclosure, Uber CEO Josh Gold discussed "the prospect for a yellow taxi dispatch" with Taxi and Limousine Commission (TLC) chief Aloysee Heredia Jarmoszuk. There are no other details provided.

According to The New York Post, Uber app users may see yellow cabs as an alternative to "UberX," which is handled by the TLC's "E-Hail" programme.

"As a regulatory agency, the TLC meets with all of its Licensees on a regular basis to discuss ideas, both individually and during our monthly Taxi Working Group convening," a TLC spokesperson told The Washington Post.

Insider reached out to Uber and TLC for comment, but neither company responded right away.

It's unclear whether New York's cab drivers are interested in partnering with Uber, given how the app destroyed their industry in its first few years.

It also comes at a time when ride-hailing apps are dealing with a labour shortage caused by the COVID-19 outbreak.

Bhairavi Desai, the leader of the New York Taxi Workers Alliance, told The Post, "I assume they want to replace their volume." "Especially at a time when many drivers are refusing to return."

A severe labour shortage has impacted industries across the United States, from construction to hospitality. Insider spoke with 22 current and former Uber and Lyft drivers from across the country on why they don't want to return to the apps.

Some drivers said they're just waiting for more people to get vaccinated, while others said they're waiting for higher income.

However, when cities begin to move again, the need for taxis is increasing. Price increases have resulted as a result of this, as well as the shortage.

According to Insider, Uber spent $250 million in April on "more incentives and guarantees" to entice drivers to come back on the road. Uber posted a $2.4 billion loss in its third-quarter financial report, owing mostly to its investment in Chinese ride-hailing behemoth Didi. However, the company's profitability were generally positive, with revenue increasing by 72 percent to $4.8 billion.

"Our early and significant investments in driver growth are still paying off," CEO Dara Khosrowshahi said at the time. "Drivers are steadily returning to the platform, resulting to further improvement in the consumer experience." "

It's unclear whether Uber will earn a part of the taxi cab rides it dispatches, but according to Desai, the company's standard 25% fee wouldn't cut it given the costs of running a regular taxi.

Insider Inc.'s parent company, Axel Springer, is an Uber investor.


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