In Chicago some licensed cab drivers use Uber to process their payments with the Uber Taxi service. You can call a cab with the app, pay the normal fare plus 20% gratuity and a small service fee. I don't use cabs often, but it's working out way better for me than when I used to call dispatch and maybe the cab would show up and maybe it wouldn't. It's also really nice to be able to just get in and get out without wasting time dealing with payments. The drivers that I've spoken to seem to like it as well as it gets them more fares.
It's also nice that they can't charge "surge" pricing on cabs, so if they're doing a 2x or 4x you can call a taxi through it for a normal-ish fare. That said, the cab option always seems to be very sparsely populated whenever there's an ongoing pricing "surge".
I haven't seen taxis done on uber anywhere other than Chicago though.
Well, surge pricing indicates increased demand and is a way to compensate on the market level. So the cars that don't have surge pricing will logically be hard to get then.
