Uber wants to do more than disrupt the traditional taxi service, seeking to bring its pricing low enough to replace your own vehicle, period.
Jalopnik reports CEO Travis Kalanick spoke with The New York Times about a 20 percent cut in pricing on UberX rides in New York, and explained what he’d like to see happen as far as his service is concerned:
The whole point of price cuts is to get UberX pricing below the cost of owning a car. Let’s say you take three or four trips a day on average. If we can get the price of UberX low enough, we can get to where it’s cheaper to take Uber than to own a car.
He adds that while that’s currently easier said than done — there are only so many drivers to go around — and that the cuts are temporary, if Uber can expand its reach through lower pricing, the service would turn a profit even if it makes the cuts permanent. Kalanick also claims his vision would benefit all involved, from providing more jobs in New York to riders getting more for their dollar.