UberX looking to undercut New York’s yellow cabs

July 7, 2014, 3:21 PM UTC
Photograph by Justin Sullivan—Getty Images

If it wasn’t an all-out war between Uber and traditional taxis, it is now.

The digital car-hailing platform is cutting the price of its UberX service by 20% in New York City for at least the time being, and launching an advertising campaign citing its service as a cheaper alternative to a regular New York City yellow cab.

Uber’s blog is displaying graphs comparing prices to travel between various New York neighborhoods. The company says it will save customers $1 on a ride from Williamsburg to the East Village, $2 from Nolita to Lincoln Center, and $2 from Grand Central Station to the Financial District.

The blog stresses that the price cut is temporary.

UberX is the cheaper of Uber’s services. It picks riders up in normal sedans rather than a town car or SUV. Uber’s blog post notes that in other cities, cheaper prices have driven up demand noticeably, resulting in more sales for drivers.

In an e-mailed statement, Taxi and Limousine chair Meera Joshi said the following:

“With shared economy and new technologies offering riders more transportation options, we are committed to maintaining high standards for safety and consumer protection. As long as services meet those standards, the consumer can choose which service best serves their needs, whether that’s based on price, vehicle type, base location, or something else entirely.”

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