Photo: Uber
Taxi-hailing app Uber Technologies has closed a deal integrating its platform with IT Taxi, a leading taxi dispatch service in Italy. The deal aims to broaden its wings in the region, CNBC reported. The new partnership comes when the taxi-hailing service continues to recover from a global pandemic lull.
Losing about $5.6 billion investing in other ride-sharing companies doesn’t seem to deter the giant Taxi company. Its current deal with IT Taxi is part of its strategy of working with established taxi-hailing services and tapping into a recovery in demand after the pandemic lull.
Two weeks ago, Uber reported strong growth in its delivery and ride-hailing business. The company pointed out that it was beginning to bounce back from a downturn occasioned by the global pandemic.
According to the statement released on Tuesday, the partnership allows more than 12,000 IT Taxi drivers in the eurozone’s third-largest economy, Italy, to accept trips using the Uber app across 90 cities in the country.
Like other taxi-hailing services, Uber is grappling with an immense shortage of drivers that is affecting prices and leading to longer waiting times for consumers.
Last year, Uber spent heavily trying to lure back drivers in the second quarter of 2021, resulting in a larger-than-expected loss. The move raised fresh doubts over the reliability of its labor model in the long term.
IT Taxi isn’t the only company in a partnership deal with Uber. The leading taxi service signed a similar agreement with New York City taxis in March. The company also has partnership deals in San Francisco, Hong Kong, and Madrid.
Uber has had a rocky growth in Europe, and in 2015, Italy, like many other countries in the region, blocked the service after legal challenges with taxi associations.
Dara Khosrowashahi, Uber CEO, said the deal was truly historical, being in one of their most strategically important markets globally. He added that he firmly believes taxis and Uber are better together.
Two weeks ago, Uber reported strong growth in its delivery and ride-hailing business. The company pointed out that it was beginning to bounce back from a downturn occasioned by the global pandemic.
According to the statement released on Tuesday, the partnership allows more than 12,000 IT Taxi drivers in the eurozone’s third-largest economy, Italy, to accept trips using the Uber app across 90 cities in the country.
Like other taxi-hailing services, Uber is grappling with an immense shortage of drivers that is affecting prices and leading to longer waiting times for consumers.
Last year, Uber spent heavily trying to lure back drivers in the second quarter of 2021, resulting in a larger-than-expected loss. The move raised fresh doubts over the reliability of its labor model in the long term.
IT Taxi isn’t the only company in a partnership deal with Uber. The leading taxi service signed a similar agreement with New York City taxis in March. The company also has partnership deals in San Francisco, Hong Kong, and Madrid.
Uber has had a rocky growth in Europe, and in 2015, Italy, like many other countries in the region, blocked the service after legal challenges with taxi associations.
Dara Khosrowashahi, Uber CEO, said the deal was truly historical, being in one of their most strategically important markets globally. He added that he firmly believes taxis and Uber are better together.
Google News