Key points:
- Uber extend plans to integrate traditional taxi drivers to San Francisco
- With the news, UBER shares gained around 5% in early-morning trading
- Contentiousness remains over possibilities of lower earnings for traditional taxis
Just last week, Uber (NYSE: UBER) boldly honed in on the traditional NY taxi market. Investors reacted well to the Taxi-merger plans, with UBER shares jumping around 5.5%. We’ve seen a similar reaction in the market this morning; shares are currently trading at a further 5% gain on the news that Uber will be extending their plans to San Francisco. Uber is targeting San Francisco-based Flywheel Technologies to allow Uber passengers in the city to hail a taxi through the Uber app.
The pilot program is awaiting approval from the San Francisco Municipal Transportation Agency, expected to take place at the beginning of April. Should Uber and Flywheel get the green light, San Francisco taxi drivers that are active on the Flywheel app will benefit from the integration of Uber customers.
The move, as mentioned after the proposal of the New York deal, could potentially settle years of market scuffles between Uber and traditional taxi drivers, but it isn’t all clear skies and rainbows; many San Francisco and New York drivers are against the new decision on the grounds that it could lead to lower earnings, or make it more problematic for longtime taxi customers to get affordable journeys.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
New York, San Francisco; where next? The mobility company’s plans to integrate traditional taxis could spur a much-needed revenue boost following a dip in the pandemic. The likelihood is that these two cities are part of a much larger plan from Uber. Should the company continue on its integrative journey, current price levels seem attractive given the upside that could unfurl.
