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Uber signs deal with IT Taxi to expand business in Italy
Uber has secured a deal with Italy’s largest taxi dispatch service to expand its business there. The American mobility as a service provider has teamed up with IT Taxi, and this partnership aims to boost the firm’s presence in the country.
According to CNBC, the deal between Uber and IT Taxi will allow the latter’s 12,000 taxi drivers to accept bookings through the Uber app. The Italian taxi dispatcher covers 90 cities nationwide.
The deal was sealed as Uber, and other ride-hailing companies are struggling to get drivers for their service. There is a shortage of drivers, and this resulted in higher fares and longer waiting times which customers are not happy about.
This is the latest deal for Uber’s expansion plans, and in this case, its brand of taxi-hailing service will be made more prominent in Italy with the help of its partnership with the local IT Taxi service dispatcher. Previously, Uber also signed a similar agreement in New York and entered into collaborations with taxi groups in Madrid, San Francisco, and Hong Kong as well.
“This is a truly historic deal in one of our most strategically important markets globally,” Dara Khosrowshahi, Uber’s chief executive officer, said in a statement. “We strongly believe taxis and Uber are better together, and we’re committed to making this a partnership of trust and cooperation long into the future.”
Its deal in Italy is considered a big step because Uber has faced opposition from Italian taxi drivers for years. It was noted that in 2017, drivers staged protests against the company after accusing it of engaging in unfair competition.
Things are better for Uber now as it is set to begin its taxi service across Italy. The ride-hailing transport company did not disclose the financial terms of its deal with IT Taxi, but its spokesperson said that the company would be taking a fixed commission for access to its platform. It is not clear how much the commission is, but it was mentioned that Uber charges a rate of 12% in Spain.
Finally, Reuters reported that Uber’s app would be available to IT Taxi drivers, and this will allow Uber to provide services in Italy’s big cities, including Milan, Bologna, Rome, and Turin. The professional drivers for Uber are currently servicing customers in luxury sedans.