Less than a month after Uber slashed its prices in 100 cities around the country, the ride-hailing service implemented similar cuts in New York City.
The New York Post reports that riders in NYC can now expect to spend about 15% less on their trips starting Friday.
The cuts, which apply to the UberX and XL services, are Uber’s attempt to increase ridership, while undercutting competition from Lyft and city cab services.
Under the plan, UberX base fares will go from $3 to $2.55, and the minimum fare for the service will drop from $8 to $7.
Additionally, the price per mile rate will drop to $1.75 from $2.15, and the per minute rate for these rides will go from $0.40 to $0.35.
As with Uber’s previously announced price slashing, the discounts aren’t expected to be longterm.
Still, the company expects ridership to jump during the discount period, citing a similar program in 2014 that resulted in the time drivers spend in cars without a fare dropping by 42%.
Some drivers tell the NYPost that they’re happy about the cuts, despite the fact they could be making less during their trips.
“We need to do something to increase the money, go ahead and do it,” one driver said.
Uber cuts rates in escalating NYC cab wars [New York Post]
by Ashlee Kieler via Consumerist
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