App-based car service Uber announced Monday that it has taken 20 percent off the price of its UberX service in New York City.
The decision marks the first time a car service has been offered at a lower price than a yellow cab, according to The Daily News. The company claimed on its website Monday that UberX is now cheaper than taking a taxi in NYC.
"From Brooklyn to the Bronx, and everywhere in between, UberX is now the most affordable ride in the city," Uber stated.
Uber now offers rides from Williamsburg, Brooklyn to the East Village in Manhattan for $15, while the same ride costs around $16 with a taxi, PC Magazine reported. The original cost for the ride with Uber was $19. A ride from Grand Central to the Financial District costs $22 (down from $28) with UberX and $24 with a taxi, while a ride from Nolita to Lincoln Center costs $20 (down from $26) with UberX and $22 in a taxi.
The decision has received mixed reviews from taxi drivers in NYC. Cabbie Ricardo Lopez said Uber is the biggest competition for cab drivers, adding that "They are making all the money for themselves," The Daily News reported.
David King, an assistant professor of urban planning at Columbia University, also opposes Uber's price cut.
"This is the type of competition that yellow taxis and green borough taxis cannot fairly compete with," he said.
On the other hand, Bhairavi Desai, executive director of the New York Taxi Workers Alliance, believes the price cut is all hype, and that Uber is doing it to satisfy customers who don't like the company's surge pricing, in which it raises prices during peak periods.
"They have been engaging in price gouging for months," Desai said.
Uber added in its announcement that the new prices are only temporary.
"The more you ride, the more likely we can keep them this low!" the company wrote.
"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. What does what mean in the long run? They'll be making more than ever!"
Uber's announcement follows its recent victory in London, having received permission last week from London's transportation regulator to keep legally operating its service in the city.
