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Uber Receives Green Signal in London and NYC

Industry: Transportation, Infrastructure & Logistics
Current: Other Industry Indicators

Transport for London (TfL) has granted Uber a 30-month license to operate in London
Uber also announced a partnership to list New York City taxis on its platform to enhance its growth opportunities
The US taxi market grew to $85 billion in 2021, registering an annual increase of 39%, while the UK taxi market reached $3.5 billion in 2021, registering yearly growth of 100%

Uber Receives Green Signal in London and NYC

On March 26, 2022, Transport for London (TfL), the city's transportation regulator, has granted Uber, a provider of ride-hailing services, a 30-month license to operate in the capital. The decision ended a years-long feud with the regulators, which canceled Uber's London license in 2017 and 2019 due to concerns over passenger safety. After these incidents, Uber enhanced its safety features and recognized its drivers as workers, allowing them access to benefits such as a minimum wage, holiday pay, and pensions.

Earlier this week, Uber also announced that it would list New York City taxis on its platform, surprising as both are competitors. However, the partnership will likely result in a win-win situation for both parties, Uber will be able to tackle its driver shortage problem, and NYC taxis will get access to a large pool of riders via the Uber app.

Growth in Ride-Sharing Services

The above developments signify the growth initiatives that Uber took to improve its business in the ride-sharing industry. Uber plans to integrate taxis worldwide on its platform using its innovative technology and strategies. Uber doubled its revenue to $17 billion in 2021. During the same time, Lyft, a direct competitor of Uber in the US, nearly tripled its revenue to $3 billion in 2021. The growth indicates that the ride-sharing industry offers growth opportunities globally. The US taxi market grew to $85 billion in 2021, registering an annual increase of 39%, while the UK taxi market reached $3.5 billion in 2021, registering yearly growth of 100%. The pandemic-affected industry seems to find opportunities for growth across the world.

The new ride-hailing service providers such as Uber and Lyft reported higher growth than traditional taxi service providers like Hertz. The technology-aided service providers offer greater convenience and flexibility to riders and drivers. Riders can schedule their trip in advance, check their journey status, share location information, know about the price before planning a ride, and use payment options such as cash and digital payment. These players are expected to pursue aggressive strategies to increase their market share, which will define the future of mobility.

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