• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechUber Technologies

Uber and Lyft Have Absolutely Gutted L.A.’s Taxi Industry

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
April 17, 2016, 4:49 PM ET
<h1>Uber</h1>
<strong>CEO: Travis Kalanick<br /></strong>
<strong>40 Under 40 rank: <strong><a href="http://money.cnn.com/gallery/magazines/fortune/2013/09/19/40-under-40.fortune/14.html" title=""></strong>13</a></strong>

Outsourcing at its finest: Uber's app blends the convenience of online ordering with the luxury of having a personal driver. With the Uber app, users can order a driver-for-hire to taxi them from point A to point B. Riders who sign up pre-enter their payment information, so the ride itself is cashless and easy to split between other users. Plus, riders can track their driver's progress via GPS on their smart phone, ensuring a reliable pickup. Vehicles come in a variety of styles, from economy to mid-range sedans to SUVs to upscale rides. Uber is now available in 18 countries and 24 U.S. cities, and it's growing.
<h1>Uber</h1> <strong>CEO: Travis Kalanick<br /></strong> <strong>40 Under 40 rank: <strong><a href="http://money.cnn.com/gallery/magazines/fortune/2013/09/19/40-under-40.fortune/14.html" title=""></strong>13</a></strong> Outsourcing at its finest: Uber's app blends the convenience of online ordering with the luxury of having a personal driver. With the Uber app, users can order a driver-for-hire to taxi them from point A to point B. Riders who sign up pre-enter their payment information, so the ride itself is cashless and easy to split between other users. Plus, riders can track their driver's progress via GPS on their smart phone, ensuring a reliable pickup. Vehicles come in a variety of styles, from economy to mid-range sedans to SUVs to upscale rides. Uber is now available in 18 countries and 24 U.S. cities, and it's growing. Photograph by John R. Coughlin — CNNMoney

The L.A. Times reports that in the three years since ridesharing services Uber and Lyft became available in the city, overall trips by conventional taxi have fallen by nearly 30%. Trips dropped from 8.4 million in 2012 to a little over 6 million in 2015. The biggest declines were in tourist destinations and entertainment centers including Hollywood and downtown.

The Times says that the impact on taxi drivers has been severe, largely because rental costs for taxis and equipment have remained unchanged even as the number of fares has fallen. A manager for LA Checker Cab tells the Times that drivers’ take home pay has declined from $800 a week to between $400 and $500 a week.

Get Data Sheet, Fortune’s technology newsletter.

Taxi trips have increased in two areas. Trips at LAX airport have gone up by 41%, while more taxis are also servicing South L.A., which drivers had avoided because it was perceived as dangerous, and trips there were shorter and less lucrative.

The airport holdout might not continue, though, as Los Angeles has recently agreed to allow Uber and Lyft to provide services there. Because taxi rates are set by city regulators, taxi companies can’t adjust their rates to compete with ride-hailing companies.

The L.A. numbers track with broader national trends, with cities like New York, San Francisco and Las Vegas also showing declines in taxi trips.

For more on Uber, watch our video.

Some of this, certainly, is thanks to the convenience factor of Uber and Lyft’s smartphone hailing systems, and quite likely better customer service. But some of the shift, as the Times report makes clear, is simply because the new ride-hailing services are cheaper—and that’s because they pay drivers less.

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Chinese court rules firms can’t lay off workers on AI grounds
AIChina
Chinese court rules firms can’t lay off workers on AI grounds
By Victor Swezey and BloombergMay 3, 2026
58 minutes ago
jason corso
Commentarydisruption
AI models are choking on junk data
By Jason CorsoMay 3, 2026
3 hours ago
Sam Altman speaks into a microphone
AILabor
Sam Altman says the quiet part out loud, confirming some companies are ‘AI washing’ by blaming unrelated layoffs on the technology
By Sasha RogelbergMay 3, 2026
4 hours ago
Zoom is giving away $150K to ‘solopreneurs’ with no strings attached—as 33 million workers ditch corporate to become their own boss
SuccessCareers
Zoom is giving away $150K to ‘solopreneurs’ with no strings attached—as 33 million workers ditch corporate to become their own boss
By Orianna Rosa RoyleMay 3, 2026
9 hours ago
Disney’s new CEO is exploring a ‘super app’ for theme park tickets, movies and more
Big TechMedia
Disney’s new CEO is exploring a ‘super app’ for theme park tickets, movies and more
By Thomas Buckley, Lucas Shaw and BloombergMay 2, 2026
18 hours ago
Apple raises Mac Mini’s starting price to $799 after AI frenzy drains supply
AIChips
Apple raises Mac Mini’s starting price to $799 after AI frenzy drains supply
By Chris Welch, Mark Gurman and BloombergMay 2, 2026
18 hours ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
2 days ago
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
Economy
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
By Jacqueline MunisMay 2, 2026
1 day ago
The American household just took an 81% margin cut. Wall Street hasn’t priced it in
Commentary
The American household just took an 81% margin cut. Wall Street hasn’t priced it in
By Katica RoyMay 2, 2026
1 day ago
America got rich and got sad. A top economist says 2020 broke something that hasn't healed
Economy
America got rich and got sad. A top economist says 2020 broke something that hasn't healed
By Nick LichtenbergMay 3, 2026
5 hours ago
Stop donating to Harvard and the Ivy League. There's a better option that MacKenzie Scott already figured out
Commentary
Stop donating to Harvard and the Ivy League. There's a better option that MacKenzie Scott already figured out
By Ed Smith-LewisMay 2, 2026
1 day ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.