Uber makes deal with Taxicabs

Uber (UBER) has apparently cut a deal in San Fransisco with taxicabs to add them to the platform. Taxis are expected to start as early as next month and New York as soon as the spring potentially adding other major cities later. At this point it looks like Uber is having a hard time turning a profit and some think it is not as a favor to the taxi industry but to fill holes in Ubers’ business model. Many drivers on both sides have concerns about their income and how the partnership will affect them in the long term. Although adding third party drivers to the platform seems like a win-win it could turn out to be a lose-lose. This is more of a pilot program, and we will know more in a year.


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