Uber Expands in London by Integrating Iconic Black Cabs

Uber Technologies, Inc UBER shared plans to open its platform to London's iconic black cabs in 2024, aiming to bridge a decade-long rift with the traditional taxi service. 

Known for their rigorous "The Knowledge" test, black cab drivers have historically conflicted with Uber, claiming it undermines their business. 

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The new Uber service will allow these drivers to use the app for bookings with no commission charged for the first six months, Reuters reports.

However, the Licensed Taxi Drivers Association (LTDA), representing most black cab drivers, has rejected the proposal. LTDA's general secretary, Steve McNamara, criticized Uber's safety record and stated their members have no interest in associating with the company. 

Black cabs, also called Hackney carriages, are the only taxis in London that can pick up passengers from the street or taxi ranks, and they are also available through other apps.

Despite the pushback, Uber remains hopeful, citing success in integrating taxis in cities like Paris, New York, and Rome. 

The company argues that drivers and passengers benefit from taxis working with Uber. The first London cab driver to sign up, Hameed Hameedi, believes joining Uber could be advantageous, potentially leading to increased earnings for drivers. 

In November, Uber reported third-quarter FY23 revenue growth of 11% year-on-year to $9.29 billion, missing the consensus of $9.52 billion. Uber's GAAP EPS of $0.10 missed the consensus of $0.12. 

Trips grew 25% year-over-year to 2.4 billion, or 27 million per day.

Price Action: UBER shares traded higher by 0.85% at $56.69 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.