UBER.US app joins New York cab hailing service, expanding its cab strategy

Uber (UBER.US) said Thursday it will include New York City's iconic yellow cabs in its app, marking the company's latest expansion in the cab market and potentially helping it overcome a shortage of drivers in its largest U.S. market.

At an investor day in February, YouTuber outlined cabs as a major growth opportunity, calling it a highly fragmented industry worth $120 billion with 20 million active vehicles, more than five times the number of vehicles YouTuber itself had before the epidemic.

The company says it plans to include all cabs in its YouTuber app by 2025. Last year, the company added 122,000 cabs to its platform. That represents 3 percent of its total driver base. If all registered cab drivers in New York City participate, the YouTuber app could add 13,600 cabs.

Uber will reportedly partner with cab software companies Creative Mobile Technologies and Curb, which said it aims to expand the partnership across the United States.