Benzinga | Apr 14, 2021 12:59PM EDT

Uber Diversifies With Higher-Margin Transit Agency Business: Reuters

* Uber Technologies Inc (NYSE: 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.