Uber cuts prices up to 34 percent for no-frills UberX car service

An Uber app is seen on an iPhone. Credit: Reuters
An Uber app is seen on an iPhone. Credit: Reuters

Uber, the red-hot rides start-up known for jacking up town-car fares, is taking the opposite approach with its no-frills UberX service.

Fares on UberX, which offers rides in ordinary cars at lower prices than the company’s high-end town car service, will be cut in 16 cities, Uber said in a blog post Thursday.

Chicago, San Francisco, Seattle, Los Angeles, Phoenix and Orange County, in southern California, will see the biggest fare cuts, the blog said. Ten other cities will also see cuts.

“We’re going all-in on being the cheapest ride in town,” Uber CEO Travis Kalanick wrote.

Under the new fare structure, rates in the Los Angeles area between Beverly Hills and Santa Monica would run $15.83 via UberX, compared with $26.80 for a cab, he said. In the Boston area, a trip from Beacon Hill to Harvard Square would run $12.55 for UberX, compared with $19.37 for a taxi.

Fares for the flagship Uber town car service, which generally run at a premium to taxis, won’t change. The company has come under fire in recent months for its “surge pricing,” under which it raises rates, sometimes by more than eight times, when demand is high.

Uber connects passengers with drivers via a smartphone app and makes money by taking a cut of the fare. It owns no cars itself.

It has entered more than 60 markets, ranging from its hometown of San Francisco to Berlin to Tokyo. Leaked financials in December indicate that the company, which began connecting passengers with drivers of vehicles for hire about 3-1/2 years ago, is generating $200 million a year in revenue beyond what it pays drivers.

Investors, led by Google Inc.’s Google Ventures, have given Uber around $400 million, valuing it at $3.5 billion. With a service that stitches together the buzziest categories in entrepreneurship — among them mapping, smartphones and local services — Uber is widely seen as one of the hottest properties in Silicon Valley.

Yet Uber still faces daunting regulatory hurdles that have left it shut out of major markets such as Miami. Lawsuits, many from taxi companies, are piling up, and competitors such as Hailo, Sidecar and Lyft are coming on strong.

 



News
Entertainment
Sports
Lifestyle
International

Sierra Leone Ebola patient, recovered from family, dies…

An Ebola patient whose family sparked a nationwide hunt when they forcefully removed her from a treatment center and took her to a traditional healer has died.

Local

VIDEO: Cop reassigned as NYPD investigates alleged head…

An officer alleged to have stomped on a Brooklyn man's head last week had his gun taken away and placed on modified duty.

National

New York Times calls for legalization of pot

The New York Times editorial board on Saturday endorsed a repeal of the federal ban on marijuana, becoming the largest paper in the nation to back the idea.

National

Two injured after cable snaps on Ohio amusement…

(Reuters) - A cable on a large swing ride at an Ohio amusement park snapped and struck two riders as the swing was in motion,…

Music

Newport Folk Festival: Photo gallery of 35 moments…

As has been the tradition since Bob Dylan plugged in a bajillion years ago, the Newport Folk Festival embraces more musical genres than its name implies.

Music

MKTO: Behind the bromance

MKTO's Malcolm Kelley and Tony Oller talk about the American Dream tour, Demi Lovato and getting turned down by girls.

Arts

James Earl Jones and Rose Byrne head to…

Two-time Tony winner James Earl Jones returns to the New York stage next month as an eccentric grandfather in a revival of the 1930s comedy…

Movies

Box office: Scarlett Johansson wins battle of brains…

Scarlett Johansson's "Lucy" handily dispatched with Dwayne Johnson's "Hercules" over the weekend.

MLB

Yankees looking to trade for Josh Willingham: Report

CBS Sports’ Jon Heyman reported Sunday the Yankees are interested in Twins outfielder Josh Willingham.

MLB

Joe Torre: I'm in Hall of Fame because…

Joe Torre spent 18 years putting together a near Hall of Fame career as a player. But it was the 12 years he spent as…

MLB

Yankees GM Brian Cashman breaks down art of…

The action frequently accelerates as the non-waiver trade deadline approaches, as it will on Thursday.

Auto racing

Jeff Gordon captures fifth title at Brickyard 400

Jeff Gordon captures fifth title at Brickyard 400

Wellbeing

This Week In Health: Friends share similar DNA,…

Friends share similar DNA, study finds Location: U.S. Study subjects: Nearly 2,000 people Results: When it comes to our social networks, it seems that birds of…

Education

Are liberal arts colleges turning away from the…

Bryn Mawr College, a small women's college located just outside of Philadelphia, announced last week that it would be making standardized tests like the SAT…

Education

Recent grads discover school superintendent plagiarized parts of…

  Two recent high school graduates made a surprising discovery about the commencement speech their school superintendent delivered at their graduation: portions of it was copied…

Career

Feeling stuck? Get out of the entry-level job…

Television and movies may be littered with 20-something characters who seem directionless when it comes to their careers, but author Mary Traina says she finds…