Uber Lowers Prices to Compete with NYC Taxis

Uber Lowers Prices to Compete with NYC Taxis

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Uber is definitely giving New York taxi drivers a run for their money.

As if coming out with a mobile app that will allow consumers to request a car service at their convenience isn’t enough competition for the taxi business, the personal car service company has just announced that it has lowered its fares in New York by 20%, making its low-end service, UberX, cheaper than a NYC taxi ride.

While the price drop is only staying in effect for a limited time, the company released a statement saying, “The more users take advantage of these savings, the more likely we’ll keep prices this low.”

This isn’t the first time Uber has decided to experiment with its prices. In April, the company raised the prices of its mid-level car service in New York and in June, lowered its prices in Los Angeles. In addition to the recent decrease in New York prices, Uber has also recently lowered its prices in 25 other cities, including Boston and D.C.

The frequent fluctuation of prices is an indication of the company using the popular monopolistic strategy of dropping prices and then raising them after achieving market control. But, let’s just hope that this time the lowered prices will be here to stay.