In an effort to increase demand, Uber is slashing its prices by about 15% throughout New York City. First reported by the New York Post, the changes go into effect on Friday and will apply to both UberX and UberXL.
The base fare for an UberX will now be $2.55, instead of $3; the per mile rate will go from $2.15 to $1.75; and the per minute rate will drop from $0.40 to $0.35. Accordingly, the minimum fare for an UberX will now be $7 instead of $8. UberXL's prices will be adjusted similarly.
Uber has already dropped its prices in other cities, but today will see those changes go into effect nationwide. As Uber and Lyft jockey for dominance in the ride-hailing market, the two have slashed prices across the country, but Uber is the first to do so in New York City.
Uber's hope is that lowering prices will increase demand, which has lagged during the winter months; the company says it has noticed a similar shift takes place during the summer, when people leave the city. Uber claims that if driver revenue doesn't go up, it will raise fares. But cheaper fares could result in drivers working more hours to make the same amount—and if demand does increase overall, it's likely surge pricing will as well, which could end up canceling out the tweaked prices.
Though this is good news for Uber's clientele, New York City cabbies certainly won't feel the same. The new prices will probably make Uber even more appealing in comparison to the city's yellow cabs, which have already been sidelined by the rise of ride-hailing services.