Uber Technologies Inc (NYSE:UBER) announced on Tuesday that it is partnering with Los Angeles Yellow Cab and its affiliates to boost the supply of taxis on the ride-hailing company's platform in southern California.
Under the new partnership, taxis associated with LA Yellow Cab, which includes San Diego Yellow Cab, California Yellow Cab, Long Beach Yellow Cab, Fiesta Taxi Cooperative and United Checker Cab, will add up to 1,200 cabs to the Uber platform.
When customers request a ride with UberX, they might get matched with a taxi, and will have the option to decline or get re-matched with a vehicle that is not a taxi, Reuters reported.
The media outlet also noted that Uber has been securing similar partnerships in global markets, including Europe and Asia, over the last two years, increasing its ties with the private taxi industry that has been hurt by the rise of ride-hailing startups more than a decade ago.
"We anticipate that this partnership will have a positive impact for our driver-owners as the pandemic recovery continues," Los Angeles Yellow Cab CEO William Rouse said.
UberX fares will apply to these rides.
The pilot program has received approval from the Los Angeles Department of Transportation, allowing taxi driver onboarding to begin this week in Los Angeles, San Diego, and Orange counties.
Los Angeles joins New York City, San Francisco, and several other major cities around the world that feature their taxis in Uber’s vehicle-hailing app.
Shares of Uber Technologies slipped nearly 1% to $44.51 in midday trading on Tuesday and have gained 76% year to date.
Contact Sean at sean@proactiveinvestors.com