Image: AP Photo/Richard Drew/Associated Press
With great funding comes great pricing power.
Uber announced Monday that it is cutting the price of UberX rides in New York City by 20% in an effort to undercut the city's yellow cabs.
"We just dropped uberX fares by 20%, making it cheaper than a New York City taxi," Uber said in a blog post. "From Brooklyn to the Bronx, and everywhere in between, uberX is now the most affordable ride in the city."
New York City's Taxi and Limousine Commission did not immediately respond to our request for comment on the announcement.
The ride-sharing startup has introduced similar price cuts in other big cities, including Boston and San Francisco, to make it cheaper than the cities' taxi services. Each time, Uber notes that the price cut is "only in effect for a limited time," but suggests that prices may remain low if more riders sign up.
Uber confirmed last month that it had raised $1.2 billion in funding, thereby aiding its ability to be more aggressive in pricing.
Have something to add to this story? Share it in the comments.
No comments:
Post a Comment