Uber charges a minimum fare of $8 for simply getting into the car, compared with $2.50 for New York's yellow cabs. The result is that the median price for a yellow cab ride in New York, says Noulas, is $19.50 versus $23.50 for an UberX ride.Įven without surge pricing, UberX can be more expensive than taking a taxi, especially for shorter trips. Noulas says the practice affects about 25 percent of UberX cars-the budget option for riders-in New York City.
Surge pricing can happen more often than you'd expect in some high-traffic neighborhoods, such as New York City's Times Square. The theory is that by allowing drivers to charge a premium, more drivers will get behind the wheel, which will help meet demand from passengers. That's because during such times, Uber and rival services such as Lyft rely on surge pricing to boost fares by up to four times the price. A taxi is likely to also be the better option when demand is high.
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