Uber Technologies UBER has decided to team up with London's black cab drivers, in a bid to end bitter rivalry for gaining control of the streets of London. The partnership will allow taxi drivers to find fares through UBER’s app. Passengers will now be eligible to hail black cabs through the app after a gap of six years.
The service is expected to start early next year. Per management, the first few drivers for the service have already been signed up.
The inking of the deal signals a welcome turnaround as far as UBER’s relationship with drivers of London’s iconic taxis is concerned. Alleging that Uber's app-based ordering and demand-sensitive pricing threatened the livelihoods of black cab drivers of the British capital, they had unsuccessfully challenged its London operating license in 2019. The drivers had also blocked the streets of London expressing concern over the threat posed by the company.
Now, management appears eager to bury the hatchet. In line with that objective, the agreement will see black cab drivers being offered jobs with a pre-determined price range through the company. The cabbies can accept or reject the offer. Moreover, black cab drivers will not be charged any commission for the first six months of the deal.
Per Andrew Brem, the leader of UBER’s UK business, this deal represented a “win-win-win” situation as it would increase the efficiency of London’s transport network along with boosting options for taxi drivers.
In fact, management has recently inked deals with taxi companies in many countries including France, Belgium, Italy and the United States as it aims to end the strife with local taxi groups. Brem was quoted as saying, “We’re partnering with taxi drivers across the world and the message we are hearing from them is clear – Uber and taxis are better together”.
Zacks Rank and Stocks to Consider
Currently, Uber carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Internet-Services industry are Lyft LYFT and DoorDash DASH, each presently carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lyft is being aided by growth in the ride-share market. Anticipating progress in rides to continue, management expects fourth-quarter revenues to rise mid-single digits quarter over quarter. The Zacks Consensus Estimate for LYFT’s current-year earnings has improved 50% over the past 60 days.
DoorDash offers a logistics and technology platform to local businesses. The company’s platform connects merchants, consumers and dashers. Its efforts to expand are commendable. The Zacks Consensus Estimate for DASH’s current-year earnings has improved 31% over the past 60 days.
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