Uber cuts prices in fare war with New York City taxis
Mobile car hire service Uber has temporarily cut the price of its cheapest service, UberX, by 20% to bring its rates in line with New York City’s yellow taxis.
This move comes as no surprise to many as similar price drops have taken place across many cities in America including San Francisco and Boston. Many analysts believe this has been done to undercut competitors like Lyft and Hailo as well as trying to attract new customers. Uber drivers are paid around 80% of the fare they receive and will be forced to accept lower payments as a result.
In a blog post announcing the fare changes, Uber said: “What we’ve seen in cities across the country is that lower fares mean greater demand, lower pickup times and more trips per hour — increasing earning potential and creating better economics for drivers.” Uber have received many complaints over recent months by taxi drivers and there were also wide spread protests across many European cities by angry taxi drivers. These protests took place in June. insureTAXI Fleet offer competitive prices for taxi fleet insurance.
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