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TAXI Industry contemplates Cutting Fares below Uber/Lyft last ditch survival plan

Discussion in 'News' started by uberparadise, Sep 12, 2015.

  1. uberparadise

    uberparadise

    Location:
    Dallas
    Driving:
    UberX
    I have been in contact with Major Cab higher ups who are contemplating an all out price war. They realize market share is shrinking, but are willing to Nuke the whole business of rideshare. Strategy will be as follows: cut fares to 75 cents to 95 cents a mile in all major cities. They have a war chest of cash. UBER is leveraged and can't survive a long hard fight like this. Cab corporations best move is to undercut UBER and Lyft and force them into a long period of red ink. (Million dollar loses). This strategy could ruin the new upstarts. They are pissed and are ready to fight it out to the bitter end.
     
    Last edited: Sep 12, 2015
  2. UberComic

    UberComic

    Location:
    Los Angeles
    Driving:
    UberSELECT
    Found this rare video of members of several cities' taxi cartels getting together to make such plans to go after Uber and Lyft.

     
  3. THIRDEYE

    THIRDEYE

    Location:
    CA
    Woot! This means Uber and Lyft will cut rates to $0.50/mile. Good times to come!
     
    Realityshark likes this.
  4. andaas

    andaas

    Location:
    Dallas
    Driving:
    Lyft
    The taxi industry is in for a big surprise! Uber and Lyft are ALREADY losing millions, lol.

    The sad part of all this is that Uber/Lyft usage, while it would not have encountered quite as exponential growth, would still outpace taxi usage, with identical pricing structures to taxi service in most cities.

    Until the taxi industry can provide a fast easy request mechanism and deliver 3-5 minute ride requests in suburban areas like Uber/Lyft typically can, versus the "30-45 minute" taxi pickup requests of the past - Uber and Lyft use will remain the preference for many passengers.
     
    hangarcat, Liz_C and BostonTaxiDriver like this.
  5. UberBlackPr1nce

    UberBlackPr1nce

    Location:
    Atlanta GA
    Driving:
    UberSUV
    Lol..... tell them to late.... check out the rates of atlanta..... unlike taxi companies who has expenses uber have found an abundant supply of crazies who will run their own vehicles into the ground for 78 cents. If the Taxi companies go that route they wouldn't kill anyone they would however systematically commit suicide and destroy themselves.
     
  6. Uh, if taxi companies get together to set prices, they are in violation of the Sherman Anti-Trust Act.

    I don't know the answer to this question. Many cities set taxi rates. Are those max rates, or can taxi companies charge less than the city regulated rate? I would think, at least in the markets where taxi companies act in collusion with corrupt city officials (NYC, Chicago, Boston), they can't.
     
  7. Just make it FREE! Forever! Just download the app! It's EASY.

    My Phoenix friends tell me that UBER has just lowered rates again. This downward spiral will never end until UBER has the whole world hooked on their service like crackheads. Travis is the Heisenberg of the taxi industry.
     
    Sacto Burbs likes this.
  8. UberNorthStar

    UberNorthStar

    Location:
    Southern Burbs of Houston
    Driving:
    UberX

    Yeah, yeah, yeah. I want to see a printed source before I believe any of this crap.

    Can you provide a RELIABLE PRINTED SOURCE to back up what you posted?
     
    Liz_C and ubershiza like this.
  9. XUberMike

    XUberMike

    Location:
    Sweet So Cal
    Driving:
    UberX
    I'm trying to figure out what "real" expenses uber has...let's see

    Lawyers lots of them
    Insurance
    Some office expense
    Awful CSRS
    IT Dept.

    WE HAVE ALL THE REAL EXPENSE

    Regardless most taxis (not you 2.50 mile;) can't compete with is service and clean vehicles.
     
    UberNorthStar likes this.
  10. ubershiza

    ubershiza

    Location:
    miami
    Where did you get this idea? Most yellow taxis have their rates fixed by the city.
     
    Liz_C, Sacto Burbs and UberNorthStar like this.
  11. Nothing related to UBER is verifiable. All UBER news is subjective. All UBER PR is adjustable. UBER is the world's biggest game of Wack-a-Mole.
     
    SharedRideTruther likes this.
  12. In Houston, Uber recently announced they had provided 3.5 million rides since they started. Let's just guess at an average fare of $10, so $2 for Uber, $7m. Plus the $1 Safe Ride fee for another $3.5m.
     
  13. Even if all the major cab companies met to discuss price fixing, they could be charged for conspiracy to violate Federal anti-trust laws.

    Precedent: Apple got together with the major book publishers to set ebook prices. The publishers settled, and Apple went to trial and was found guilty. They had to repay something like $100m to ebook customers.

    Opinion: Uber may be bad, but Apple is a horrible company. They have $150b stashed in off shore accounts and give practically nothing to charity. So, the next iThing you buy, just keep in mind that about 20% of the cost is pure super-profit that goes to Ireland and will never be reinvested in the US economy. Sorry, off topic rant.
     
    UberXTampa and UberNorthStar like this.
  14. andaas

    andaas

    Location:
    Dallas
    Driving:
    Lyft
    I was curious about this myself and did some local research; here in Dallas, the for-hire vehicle rates are a maximum and not a minimum. So taxi companies can reduce rates here at least. Those rates here are:

    Initial meter drop $2.25
    Each 1/9 mile $0.20
    Waiting time $0.45 each 90 seconds
    Each additional passenger $2.00 (up to legal vehicle capacity)​

    With the above rate structure, Uber would still stomp on the taxi business here even at 80-90% of the current fare structure simply based on the additional passenger rates.
     
    Liz_C likes this.
  15. 20yearsdriving

    20yearsdriving

    Location:
    SoCal
    Driving:
    Livery
    Last ditch suvival plan?

    All I read in this forum is survival advise ?
     
  16. I couldn't find the official Houston fares (404 error), but I checked four cab companies, all of which had the same rates and identical wording, and they mention the fares are 'regulated.'
     
  17. UberNorthStar

    UberNorthStar

    Location:
    Southern Burbs of Houston
    Driving:
    UberX
    I feel the WSJ and the NY Times among others are reliable sources of info on Uber.
    <EDIT: More reliable than one person's report.>
     
    Last edited: Sep 12, 2015
  18. Just to quibble, the NYT has been busted a couple of times for not fact checking articles, if not for outright fabrication
     
    UberNorthStar likes this.

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