Uber, Traditional Taxis Team Up in San Francisco — Is This Good News for Drivers?

San Francisco officials agreed to extend an arrangement between Uber and the taxi company Flywheel that would allow passengers to request a taxi through the Uber app and bypass the taxi meter.

However, some interviewed taxi drivers believe that the new alliance could be harmful to the taxi industry because there are not enough safeguards in place to ensure that the pilot is stopped if it begins to go in the wrong direction.

Uber Will Offer Taxi Rides in San Francisco

In San Francisco, Uber and taxis are close to finalizing a new alliance that will allow consumers to book either on the same app.

Officials in San Francisco agreed to extend an agreement between Uber and Flywheel, which will revolutionize the way taxis operate in the city.

According to Engadget and ABC7 News, the companies were able to finalize the deal after the San Francisco Municipal Transportation Agency (SFMTA) board voted to extend a pilot program that allowed passengers to order a taxi through the Uber app and have the taxi meter removed automatically, allowing taxis to receive flat upfront fees for rides hailed using a third-party app.

For taxi rides, customers might expect to pay UberX prices, which are determined depending on journey time and distance in addition to a basic fare.

The SFMTA will have 90 days to complete the regulations and procedures for the year-long pilot beginning on August 5.

Taxi Drivers' Take Towards Uber

In the next few months, the deal will provide 1,075 taxi drivers in the area access to Uber users.

Taxi drivers may earn less for Uber rides than usual because the ride-hailing app's prices are typically lower than metered fares. However, their participation is entirely voluntary as they can accept Uber trips whenever they want with no repercussions if they refuse.

Uber and Lyft fares are roughly 80% to 85% of metered rates, said Kate Toran, SFMTA's director of taxis.

Some people are opposed to taxi drivers using the Uber app.

Evelyn Engel of the San Francisco Taxi Workers Alliance told ABC7 News that the new alliance could be detrimental to the taxi sector. There are not enough guarantees in place, according to Engel, to ensure that the pilot is halted if it starts heading in the wrong direction.

David Smith, a taxi driver for 23 years, sees this pilot program as Uber's way to get more drivers on the road and not necessarily to help taxi drivers make more money. "We want metered fares basically," said Smith.

Meanwhile, Mark Gruberg of the San Francisco Taxi Workers Alliance told NBC Bay Area that Uber is a company with a terrible track record of trust. He also wants assurance that "cab drivers aren't going to be hurt by this and the public isn't going to get hurt."

However, not all individuals are entirely against cab drivers using the Uber app.

Muwaffaq Mustafa, operations manager at Flywheel, believes that the partnership with Uber will benefit cab drivers, particularly during the pandemic.

"Especially just coming out of this brutal pandemic, we need this business so bad," Mustafa said.

The basic rate compensation for drivers, a cap commission rate for Uber, and tighter local regulations for Uber are among the concerns of taxi drivers.