Uber Diversifies With Higher-Margin Transit Agency Business: Reuters - Uber Technologies (NYSE:UBER)

Uber Technologies Inc UBER collaborated with Denver’s Regional Transportation District, Maryland’s Cecil County Transit, and Central California’s Porterville transit agency to offer routing and matching technology for their public transportation fleets, Reuters reports.
The agencies will utilize Uber’s software to operate their transit or paratransit service under the arrangement.
Passengers in the cities will be able to book transit or wheelchair-friendly rides via the Uber app. However, the transportation will be provided through the transit agencies’ drivers and vehicles for such rides.
The arrangement offered higher margins for the company than the conventional services, based on the last year’s Uber official’s comment.
Uber remained in active discussions with multiple other transit agencies. The company had previously announced software-based deals with two other transit agencies in Marin County, California, and Cape May County, New Jersey.
The tech-based agreements enabled agencies to swap some fixed-line bus routes with on-demand trips in lower-populated areas or during relaxed hours.
Uber acquired transit software provider Routematch last year to expand its transit agency customer base.
The business diversification was ideally timed with the pandemic-induced hit at Uber’s core business.
Uber recently acknowledged a vaccine-induced recovery in its core business with impressive March numbers.
Price action: UBER shares traded lower by 0.10% at $60.58 on the last check Wednesday.

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