Uber Continues to Make Its Move

The increasingly popular car-sharing service Uber is continuing to make its way into the mainstream. Recently it was announced that Uber would be temporarily cutting rates in New York City by 20% for its UberX services (Uber’s lower-end service which sends “regular” cars instead of higher-end SUVs/Black Cars). The biggest impact of this price cut is that Uber’s services are now cheaper than those of a New York City Cab, positioning Uber for immense growth in the market place. As is pointed out in a recent CNN Money:

An UberX ride from Grand Central Station to the Financial District, for example, will now cost about $22, down from about $28. The same ride in a city cab will cost between $24 and $28, depending on the time it takes to get there, said a spokesman for the NYC Taxi and Limousine Commission.

Tip is already included in the Uber rate, unlike the traditional cab’s fare.

As the NYC Cab is synonymous with the city itself, the fact that Uber is currently poised to undermine the taxi’s services has the potential to further expand the reach of Uber in NYC, and beyond. Uber has also offered these same discounts in a number of different cities as well, including in Washington DC.

However, the fact that this is being implemented in NYC is important. This is because the taxi market in New York City is extremely large, and many rely on taxis to get around. Therefore, the fact that Uber is able to challenge this established marketplace, makes it appear that Uber’s growth is inevitable. This just further shows that Uber has the potential to become the transportation service of the future.

Read More- “Uber cheaper than New York City taxi-for now” (Katie Lobosco, CNNMoney)

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A rising senior at Colgate University, John is currently working as a research fellow with Consumers' Research.


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