Uber has reached an agreement to list New York City taxis on its app.
News of the deal sent Uber shares up as much as 5% in premarket trading.
“This is a real win for drivers – no longer do they have to worry about finding a fare during off peak times or getting a street hail back to Manhattan when in the outerboroughs,” said Guy Peterson, Uber’s director of business development, in a statement. “And this is a real win for riders who will now have access to thousands of yellow taxis in the Uber app.”
The agreement marks a sizable shift for Uber, which has faced opposition from traditional taxi services since its founding in 2009.
It also comes as Uber, Lyft and other ride-hailing companies grapple with a shortage of drivers. After a dramatic decline in traveling due to the coronavirus pandemic, ride-hailing companies have struggled to bring drivers back to full speed, which has made rides more expensive.
Uber CEO Dara Khosrowshahi teased last month plans to bring more taxis onto the Uber app, beyond New York City.
“I will tell you we wanna get every single taxi in the world onto our platform by 2025,” Khosrowshahi said in an interview last month with CNBC’s Andrew Ross Sorkin.