Uber To Undercut Taxi Prices By Lowering Prices 20 Percent In New York

July 8, 2014 | Sophie Weiner

Uber, the car service and taxi app, hasn’t yet had much of an impact on New York’s yellow cab industry. That might be about to change now that a 20% fare cut will make Uber cheaper than regular taxis reports Tech Times. These price cuts will only be effective for Uber’s cheaper UberX service. Their luxury car service, which has already begun to undermine the city’s livery car services, will remain the same price.

The move is an attempt to draw more customers away from yellow cabs in favor of Uber. They can pull this off after a recent round of venture capital funding raised $1.2 billion, making them the most valuable startup in the world. Meanwhile, many taxi drivers are struggling to make a decent wage. The company is currently facing lawsuits by several cab companies who are accusing Uber of price-fixing and noncompliance with regulations. They continue to stir controversy around the world by disrupting established taxi cab industries with their artificial pricing and lack of regard for existing laws. (Photo: Pete Bellis)