Join Transform 2021 this July 12-16. Register for the AI event of the year.


Updated 12 p.m. with comment from Uber confirming that drivers are now paid less per ride in New York.

Uber today announced that it is “now cheaper than an NYC taxi,” after lowering fares in New York by 20 percent.

As we wrote last week, Uber is no stranger to price cuts and hikes. In April, it raised the price of its mid-level service in New York, and in June it lowered prices in LA. Most recently, Uber cut the price of its UberRush bike courier service in New York. Now UberX, Uber’s low-end car service, is marginally cheaper than New York cabs, as detailed in the graphics below:

Screen Shot 2014-07-07 at 4.50.35 PM

Uber states that the current prices are “only in effect for a limited time.” This warning somewhat alludes to the common monopolistic strategy of dropping prices and raising them back up after achieving market control — a strategy recently suspected of Amazon.

“The more you ride, the more likely we can keep them this low,” Uber says. In a statement to VentureBeat, Uber confirmed that New York drivers will make less per ride they provide: “NYC drivers will continue to earn up to 80% of the lower fare,” the company said.

VentureBeat

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more
Become a member