Uber Drops NYC Prices Below Yellow Cab Fares
Published: July 7th, 2014
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An interesting development in the ongoing Uber vs. Taxi battle – an UberX now costs less than a standard yellow cab ride in the five boroughs.
As part of a promotion, Uber is dropping fares on their UberX (privately driven car) service so that it undercuts the equivalent trip on a New York yellow cab. New York’s Taxi and Limosuine Commission and Uber have a long, fairly acrimonious history, but this latest move has even broader consequences.
As Zero Hedge shows, the price of a New York City taxi medallion has skyrocketed in recent years – and you can bet that the parties who have invested in these medallions will be pushing back fiercely against Uber’s latest price cut.
More by Derek Kreindler
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As MLS notes above, this price drop occurred last year in Boston. A 7-mile ride from downtown Boston to my home cost $21 plus tip via cab before I started using Uber; the exact same trip via UberX was $14 including tip. I will add, however, that of the seven or eight Uber rides I have had in the past year, it was the least comfortable (a BMW E90 3-series sedan). The ride experience with UberX is so much more pleasant than a cab ride. With the lower cost and convenience of using the app, it's an easy decision.
Here is the email I received in San Francisco: "We just dropped uberX fares by 25%, making it 45% cheaper than a taxi. In San Francisco, the East Bay, San Jose and everywhere in between, uberX is the most affordable ride on the road. https://flic.kr/p/ofap27 The picture shows their sample fares.
I didn't know Uber was more expensive in the beginning. I thought being cheaper was the point.
Uber = Black car, typically owned by a car service and registered with a TCP number. Expensive. UberX = some random dude in a Corolla or Prius driving you around for peanuts. Neither are about low fares, the first is about exclusivity, the second is about crushing taxis, so the can raise fares in the future.