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Transportation The Almighty Buck

Uber Is Now Cheaper Than a New York City Taxi 139

Posted by samzenpus
from the penny-pinching dept.
redletterdave writes Uber announced in a blog post on Monday it would cut the prices of its UberX service in New York City by 20% — but it's only for a limited time. Uber says this makes it cheaper to use UberX than taking a taxi. Consumers like Uber's aggressive pricing strategy but competitors — and some of its own drivers — are not as happy. UberX, Uber’s cheaper service usually hosted by regular people driving basic sedans rather than fancy black cars, also cut its rates by 25% last week in the Bay Area, including San Francisco, San Jose, and Oakland. As a result of that announcement, Uber said its service was effectively “45% cheaper than a taxi.”
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Uber Is Now Cheaper Than a New York City Taxi

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  • Re:No thanks. (Score:2, Insightful)

    by Anonymous Coward on Monday July 07, 2014 @04:08PM (#47402399)

    I like the part where you think a medallion prevents any of that.

  • by Bill, Shooter of Bul (629286) on Monday July 07, 2014 @04:15PM (#47402469) Journal

    For young and invincible drivers, its usually the older more mature drivers without that attitude that end up subsidizing them.

  • Well Sure (Score:1, Insightful)

    by CanHasDIY (1672858) on Monday July 07, 2014 @04:21PM (#47402503) Homepage Journal

    It's easy to undercut the competition when they adhere to regulations and you don't.

  • Re:No thanks. (Score:4, Insightful)

    by Shados (741919) on Monday July 07, 2014 @04:28PM (#47402545)

    This is the only reason I use Uber (though I push it a notch and use Uber Black, even though its pretty expensive).

    When I need to take a cab at 4 AM to go to the middle of nowhere (I don't have a car, as I only need this like twice a year or something, not worth it), hailing a shady dirty taxi who'll bitch and moan about me asking to go somewhere unprofitable isn't exactly my preference.

    Uber (Black) has been doing quite nicely. Up the standard of normal taxis, even if you have to double the price, and I'll happily use them again.

  • by bws111 (1216812) on Monday July 07, 2014 @05:01PM (#47402831)

    Of course it makes sense. Insurance rates are based on risk. Are you claiming that a car that is on the road all day long, in very congested conditions, making frequent stops to pick up/drop off passengers has no more risk of being in a collision than any other vehicle?

  • by cheesybagel (670288) on Monday July 07, 2014 @05:27PM (#47403021)

    Remember that adage that 90% of car accidents happens 5 minutes away from the departure point or 5 minutes before the arrival point? Guess what a taxi service is constantly doing...

  • by SethJohnson (112166) on Monday July 07, 2014 @05:31PM (#47403049) Homepage Journal

    Why shouldn't the same insurance rates apply to everybody, simply based on mileage, driving history, and vehicle type? I mean, if I wanted to pick out a category of drivers to charge more, it would be mothers with children in their cars (they are dangerous), not Uber drivers looking for rides.

    Consider the scenario where you are standing on a street corner and a car comes rushing towards you at a high rate of speed. Collision is imminent. You're going to survive the impact, but you'll be paralyzed from the neck down for the rest of your life.

    If the car that crippled you was operated by an employee of a cab company, it might mean that a legal settlement would be reached such that you'd spend the rest of your life at your house with inhouse nurse care.

    If the car was an Uber driver rushing down the street to pick up a customer before becoming inpatient and choosing a different car in the app, well, I hope you have substantial insurance through your own job. When you attempt to sue Uber over your injuries, they'll say they have no liability in the matter because their driver wasn't on the clock with a passenger. And they'll exert significant legal resources to prevent creating a precedent that'll put them out of business. They'll happily spend more fighting your case than the amount for which your suing. In this scenario, you're likely to have to live at an institution to be provided needed medical care for the rest of your life.

    As for your stereotyping of mothers with infants, the most common cause of car accidents is distracted driving due to cellphone usage [marketwatch.com]. Seems that Uber drivers looking for fares would strongly fit into that category....

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