You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Fort Wayne ranks No. 11 on Forbes list of Opportunity Cities
    Forbes has ranked Fort Wayne No. 11 on its list of Opportunity Cities. The 19-city list, published Thursday, put Columbus, Ohio, at the top.
  • Alibaba stock soars 40% in massive IPO
    NEW YORK – Alibaba debuted as a publicly traded company Friday and swiftly climbed more than 40 percent in a mammoth IPO that offered eager investors seemingly unlimited potential for growth and a way to tap into the burgeoning Chinese
  • China levies record fine
    BEIJING – Drug giant Glaxo­SmithKline was fined $492 million Friday for bribing doctors in China in the biggest such penalty ever imposed by a Chinese court.
Advertisement

Uber takes on taxis with discount rides

– The car-hailing service Uber is taking on New York City’s taxis, temporarily dropping some of its prices by 20 percent.

The company says the price of its UberX lower-end service is now cheaper than the rate charged by the city’s famous yellow cabs.

For instance, a ride from Grand Central Terminal to the financial district would now cost roughly $22, down from $28 before the sale.

Uber said a similar ride in a yellow taxi costs $24.

The sale in the nation’s largest city – one heavily dependent on taxis – comes following similar temporarily reductions in the past month in Atlanta, Boston, Washington, D.C., Los Angeles, Chicago and San Francisco.

Uber says that if the reduced fares attract more passengers, it’s more likely to keep the prices low.

Founded in 2009, Uber connects cars with passengers though its GPS-enabled smartphone app.

Many of its drivers have black Lincoln Town Cars or SUVs and compete with traditional limo or car service companies where passengers make a phone call to arrange a ride.

Uber users instead verify their location on a smartphone map, request a car, see how many minutes away it is and then track its progress as it drives to their location.

The San Francisco company’s cheaper car service, UberX, offers run-of-the-mill sedans and minivans; they lack the luster of the shiny black Town Cars, but they come at a lower cost. That service is the one now on sale.

The lower fares do not factor in Uber’s “surge pricing” – a different rate that is charged when there is great demand for cars. For instance, during heavy rain or snowstorms or busy holidays such as Halloween or New Year’s Eve, Uber has been known to double or triple its rates in some neighborhoods.

But the company and New York state attorney general said Tuesday that Uber has agreed to limit prices during emergencies, natural disasters or other unusual market disruptions, consistent with state law against price gouging.

Besides traditional taxis and car services, Uber competes with other smartphone-based car services, including Sidecar and Lyft.

The car services have encountered resistance from taxi regulators in some cities and from the airport authority in Los Angeles.

Advertisement