The battle between Uber and traditional taxis is heating up in New York City. The four-year-old company temporarily dropped its prices by 20%, making Uber cheaper than taking a cab in NYC.
Uber lets smartphone users order a ride and pay for it within an app. There’s no need to tip or to take out your wallet at the end of your ride.
The 20% discount currently only works with the cheapest service, UberX. UberSUV and UberBlack remain the same price, but offers sending an SUV or nicer car.
This isn’t the first time Uber cut fare prices. The company offered up to 25% off in certain cities like San Francisco and Atlanta this summer.
If this experiment results in much higher demand, Uber may keep the pricing permanently, said Uber general manager Josh Mohrer speaking with CNN.
Uber still uses surge pricing, so that 20% discount may not apply during periods of high demand. Many users protest this dynamic pricing model, as prices have soared 800% during periods of high demand like snow storms.
Uber still faces intense protests from taxi drivers throughout the world as its service expands across the globe.
Source: CNN Money
