First I thought this wasn't worth the news, but then I realized that this isn't just a new service for Uber. I imagine this is a way for them to deal with SF taxi services that want to get rid of black town cars.
Uber is now giving taxies a way out. By adding them to the system, cabbies cannot complain that Uber is awful and illegal competitor.
If the cab service sucks, well, it's the Taxi's fault and you can still book Uber Black. Uber wins. If the taxi service works, Uber will get a cut from the transaction.
I talked to a few drivers about Uber Taxi when they launched here in Toronto about a month ago. They seemed to love it. Pickups have a rating and verified identity, which is a safety bonus. Fares are pre-paid with 20% gratuity automatically. And they don't have to pay the credit-card processing fee.
As someone who lived in Toronto and moved to SF, it's a different scenario. Taxis in Toronto are plentiful, and there are almost always taxis available - just not where you want them so it fits. In SF it's different - there's not enough and they can pick up rides anywhere. That's why calling a taxi doesn't work as well as Toronto (where you can call one and they'll show up). In SF half the time they don't show up because they'll pick up a far on the way.
I'm wondering how they plan to justify a markup on taxis though. Uber Black isn't much more expensive than a taxi as it is, so if I'm going to pay above what a normal taxi costs, I'd just as soon go that route. If they plan to take a 'referral fee' from the taxi companies, I think they're still going to get a bunch of opposition as that'll cut into margins.
I don't know nearly enough to know whether or not taxi services currently offer any kind of referral benefits or what, but I envision taxi services as low margin operations as they are (though that could be way off the mark).
In LA, the Uber black rates are approximately 20% more than the same trip via taxi. So since it all works out to the same, it doesn't make sense to not go for the Uber black service.
Uber is now giving taxies a way out. By adding them to the system, cabbies cannot complain that Uber is awful and illegal competitor.
If the cab service sucks, well, it's the Taxi's fault and you can still book Uber Black. Uber wins. If the taxi service works, Uber will get a cut from the transaction.
Either way, Uber wins.