Uber Stock Surges After Deal to List All New York City Taxis On Ride-Sharing App

Updated at 10:24 am EST

Uber Technologies  (UBER) – Get Uber Technologies, Inc. Report shares surged higher Thursday after reaching a deal with ride-hailing group Curb to list all New York City taxis on the Uber app.

The strategic partnership, which will eventually spread nationwide over the coming months, will first launch in New York City and allow Yellow Cab drivers to access trip requests from Uber users, as well as those from the existing Curb app, as well as the app made by Creative Mobile Technologies. Uber users will be able to book rides through the app with Curb-connected taxi drivers, the companies said.

The New York City Taxi & Limousine Commission had just under 175,000 licensed drivers in operation last year, according to its most recent annual report, with around 100,000 vehicles licensed to serve public demand, including 13,587 Yellow Medallion Taxis authorized to accept street hails.

“We are excited to kickstart our partnership with Curb and allow Uber users to have immediate access to Curb’s taxi-hailing network, which will add tens of thousands of vehicles to the Uber platform in New York City and beyond,” said Guy Peterson, Uber’s director for business development. “We’re looking forward to expanding together as we launch the integration in other key cities across the country.”  

Uber shares were marked 2% higher in early Thusday trading to change hands at $33.65 each, a move that would extend the stock’s year-to-date decline to around 23%.

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Last month, Uber said it expects to report $5 billion in operating profits by 2024 — compared to a loss of $800 million in 2021 — and sees gross bookings rising to between $165 billion and $175 billion, according to details from an investor day presentation in New York.

That tally would represent a 140% gain from the $90 billion in gross bookings recorded last year.

Gross bookings for 2024 are expected in the region of $165 billion and $175 billion, with the company forecasting adjusted earnings of $5 billion by 2024.

CEO Dara Khosrowshahi said it’s a “worthwhile target, could there be upside, absolutely, but let’s work on that target for now.”

Uber posted stronger-than-expected fourth quarter earnings, and eked out a small adjusted profit of $82 million for the three months ending in December, its second profitable quarter in a row.

Revenues surged 83% from last year’s pandemic trough to $5.8 billion, Uber said, while delivery revenues, which includes Uber Eats, rose 78% to $2.42 billion.

Khosrowshahi, however, said uncertainly linked to the fading Omicron wave would continue to affect ride activity, but noted that “mobility is already starting to bounce back, with gross bookings up 25% month-on-month in the most recent week.”