TechHive: Uber’s fare cuts won’t cancel out surge pricing’s bad press

TechHive helps you find your tech sweet spot. We guide you to products you'll love and show you how to get the most out of them. 
Book your hotel early for a discount!

You can reap the rewards with great discounts at participating Pullman, M Gallery, Grand Mercure, Novotel, Mercure, ibis and Formule 1 hotels.
From our sponsors
thumbnail Uber's fare cuts won't cancel out surge pricing's bad press
Jan 13th 2014, 21:36, by Caitlin McGarry

Controversial transportation app Uber recently slashed the cost of its ride-sharing service UberX in 16 cities across the country in a move designed to convince users that it's not a price-gouging service only rich people can afford.

uber map

UberX is Uber's lower-priced alternative to its ritzier black car service. In recent months, the company has cut the base fares on UberX to make the app more competitive with cab companies and other ride-sharing services like Lyft and Sidecar. This latest round of cuts is by far the deepest, but it's also a temporary solution to reassure riders that Uber is an affordable alternative to traditional cabs after recent surge pricing solutions made headlines.

The company has long implemented surge pricing in an effort to get more drivers on the road during times of peak demand—like holidays and storms. But critics say the prices tend to surge far too high—sometimes up to seven times the normal price no matter how many drivers are around. Uber won't disclose how it calculates the surge multipliers, but has maintained the controversial policy even as it cuts prices in 16 of the 24 cities where UberX operates.

In San Francisco, UberX prices are now 33 percent less than taxi fares. In L.A., a ride from Beverly Hills to Santa Monica is $15.83 in an UberX compared to $26.80 in a cab.

To read this article in full or to leave a comment, please click here

You are receiving this email because you subscribed to this feed at

If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions
Next Post »