Uber Is Now Cheaper Than a New York City Taxi 139
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.”
And in other news (Score:5, Informative)
The amount of insurance carried by Uber drivers is also probably much less than NY taxis.
Re:What? (Score:4, Informative)
It appears so.
http://www.taxiautofare.com/us... [taxiautofare.com]
I didn't know taxi fare in NYC was so reasonable. I guess there is more competition in NYC. They also make up for it in quantity. Many other places the taxis sit around waiting for fares much longer.
One key clarification (Score:5, Informative)
UberX in NYC is somewhat different from UberX in most markets. In NYC, UberX uses licensed livery cars and drivers (who have livery licenses, commercial insurance, etc), the same as Uber Black, etc., and the standard car service companies. The only difference between UberX and Uber Black in NYC is that UberX will have less nice cars (typically Camrys vs. Town Cars).
This is very different from UberX in SF, LA, etc., where it's pretty much "got a car? got a license? congrats, you're an UberX driver!"
Re:And in other news (Score:5, Informative)
Not to mention that Uber drivers probably aren't paying as much as $1 million [nytimes.com] for a single taxicab license.
Re:And in other news (Score:5, Informative)
NYC Taxis have to carry $100k (per person) / $300k (per incident) liability insurance. That's the same for Uber drivers.
http://www.nyc.gov/html/tlc/do... [nyc.gov]
Re:What? (Score:5, Informative)
Cab fares are regulated in NYC. Competition has nothing to do with it. http://www.nyc.gov/html/tlc/ht... [nyc.gov]
Re:And in other news (Score:4, Informative)
Not according to Uber's web site [uber.com].
If you’re taking a ride requested through UberBLACK, UberSUV, or uberTAXI, your livery or taxi transportation provider carries a commercial insurance policy in at least the minimum amount required by local regulations. If you didn’t get his or her insurance information at the time of the accident, please reach out to us so we can connect you.
If you’re taking a ride requested through uberX, some transportation providers are rideshare drivers providing transportation with their personal vehicles. Rideshare providers carry personal insurance policies. In addition, there’s a commercial insurance policy with $1 million of coverage per incident. This policy covers drivers’ liability from the time a driver accepts your trip request through the app until the completion of your trip. This policy is in addition to the driver’s own policy, but it acts as primary insurance if the driver’s policy is not available for any reason. An additional insurance policy covers drivers when they are logged into the Uber app but are not currently on a trip.
There is also uninsured/underinsured motorist coverage (UI/UIM) of $1 million per incident for bodily injury, in case another motorist causes an accident and doesn’t carry adequate insurance. So, for example, injuries caused by a hit-and-run accident would be covered by the UI/UIM.
For additional information, visit our blog: blog.uber.com/ridesharinginsurance