Uber adds taxi option for Chicago riders

Uber riders in Chicago are seeing a new option in the app: a taxi.

The ride-hailing company, which has long been blamed for a decline in taxi business, added the feature Thursday. But some Chicago cab drivers remain skeptical of the addition and bitter toward the company.

Uber collaborated with taxi technology companies Arro and Curb Mobility, allowing about 2,600 Arro- and Curb-enabled Chicago taxi drivers to accept Uber referrals. The city has about 2,800 active cabs.

“We firmly believe that Uber and taxis are better together. As we continue to strengthen our relationship with the taxi industry, we’re thrilled to announce this next phase of our partnership with Chicago taxi drivers,” said Camiel Irving, an Uber executive, in a news release.

For the taxi, riders pay the UberX rate, which the company describes as being the “low-cost option” of its offerings. Riders receive upfront pricing in the app, so they know the fare before requesting a trip, according to Uber. Riders can tip and rate drivers in the app.

In some cities, like Istanbul and Tokyo, taxis are Uber’s primary offering. Similar taxi pilots already exist in New York City, San Francisco, Southern California and Washington, D.C.

Some Chicago taxi drivers worry they won’t get a fair cut of the fare if they opt in.

Shoib Hasan, owner of Globe Taxi Association, which operates 104 taxis in Chicago, suspects Uber will “take the bigger cut.”

“If you take a taxi from downtown to here, it will cost you about $37, and the driver will keep $37,” Hasan said. “If Uber starts doing it, how much will they quote you as a passenger and how much will they give to the driver?”

Uber said taxi drivers’ earnings will be calculated with an upfront fare shown to drivers. Before accepting an Uber trip referral, taxi drivers will see that upfront fare and can choose to accept or reject the request. That fare is based on variables including time, distance rates and real-time demand at the destination, Uber said in a statement.

Hasan said he does not think the addition will increase the number of taxi drivers in Chicago. In 2016, the total number of licensed cab drivers was 9,500, compared with today’s 2,800.

“This is like the bottom,” Hasan said. “Once upon a time, there were taxi drivers in Chicago.”

Peter Enger, a Chicago taxi driver for 19 years, said he would not sign up with Uber, calling the addition “doomed to fail.”

Enger said taxi drivers know the best routes and are well-versed with the city’s inner workings. He said some customers choose taxis over an Uber.

“They’re sympathetic with people who are trained for the business, who are licensed by the city,” Enger said.

He said taxi drivers are mistrustful of Uber, which he claimed “destroyed the taxi business” in Chicago.

“We just have a bad taste in our mouth about the Lyft, Uber, and the whole advent of rideshare,” Enger said.