Uber (UBER) Stock Gains 5.5% on Decision to List NY Taxis, What’s Next?

Trade UBER Stock Your Capital Is At Risk
Ollie Martin
Updated: 24 Mar 2022

Key points:

  • Uber announces the surprise listing of NY taxi drivers on its platform
  • UBER gained around 5.5% premarket
  • The move comes as the company faces driver shortages and slow pandemic revenue

One of the global leaders in mobility made a surprising announcement today. Uber is no longer exclusively for Uber drivers in a decision from management to list all of New York’s traditional taxis. It’s the largest decision from the company to date and represents a clear exposure strategy that should help claw back revenue lost over the pandemic. Uber stock gained around 5.5% premarket on the news as investors react well to the new NY taxi monopoly. 

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Uber has been forced to think outside of the box lately as various headwinds have thrown the mobility market in decline. In particular, a widespread driver shortage doesn’t bode well for the worlds leading app-based taxi service, so Uber decided to broaden its brand horizons by allowing NY taxi drivers to register on the app and work through the Uber platform. 

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The deal also acts as a sort of peace offering. With New York being on a global honeypot for tazi drivers, the rife conflict between traditional taxis and the ever-growing Uber brand continues to cause tension in the mobility market; Uber’s decision today provides somewhat of an equal, inclusive marketplace for taxi drivers to operate; whether as an Uber driver or not. 

In Uber’s last quarterly report, the company reported a prominent bounce in revenue driven by a return in airport bookings and a return to traditional work travel, but the company still lacks behind pre-Covid levels. This bold bid by Uber could transform the very concept of the company itself. 

Arguably, loyal Uber drivers might miss out on earnings due to a large rise in available drivers; but due to pricing variations, it shouldn’t have much of a negative impact. All in all, the decision massively increases Uber’s exposure, unveils further monetization for the company, and allows traditional Taxis to benefit through Uber’s easy app-based interface. 

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