Connect with us

Uber, lyft and other taxis

Uber vs. Taxi: What’s the Difference?

Published

on

uber lyft news

In 2019, Uber has a footprint in most major (and medium-sized) cities in the U.S. But while Uber has been gaining market share over the years, taxis are still holding their ground as a common transportation service in and around cities.

While both services charge based on time and distance traveled, Uber and taxis have noticeable differences that might motivate some consumers to choose one over the other.

So, what’s the difference between Uber and taxis, and which offers the better service?

Uber vs. Taxi: What’s the Difference?
While taxis have been on the streets since the late 1800s, Uber quickly began taking over a share of the car-service market after its launch in 2010, followed by competitors like Lyft in 2012.

In New York City and the like, yellow taxi cabs have long been the transportation of choice for locals and tourists, but with apps like Uber disrupting the space, consumers have more choices than ever to get where they need to go.

Taxis seem to be steadily losing passengers compared to other ride-sharing services. Still, according to a report by Wired this year, some 106,000 for-hire vehicles are licensed to operate in New York City, a 60% increase from 2016.

While both taxis and Uber create rates depending on time and distance traveled, Uber has a slightly more predictable pricing model – offering passengers an estimated total cost (although even this is subject to change). Additionally, one of the major differences between Uber and taxis are how they price rides – with taxis taking into consideration the speed and flow of traffic while Uber doesn’t.

Uber vs. Taxi: Safety
One of the biggest concerns for consumers when using any car service is safety. And with the media coverage of safety incidents over the years, it’s a valid question.

But, which service has a better safety measures?

Uber
Uber has attracted several accusations of unsafe, criminal activities by its drivers.

In fact, according to CNN Business last year, 103 Uber drivers were accused of sexual assault or abuse – with some “31 drivers […] convicted for crimes ranging from forcible touching and false imprisonment to rape, and dozens of criminal and civil cases are pending,” CNN reported. However, there is no publicly available data for these statistics from any of the ride-sharing companies, including Uber.

Still, Uber has recently taken initiatives to increase safety on the app, announcing new features like Trusted Contacts, which allows users to share their ride details with up to five friends or family members. Additionally, other features include 911 Assistance, which connects riders with 911 services.

Uber has also proposed to annually run criminal and motor vehicles checks, even if that is more than what’s legally required. And, the app claims to be investing in new technology to investigate new criminal offenses as well.

But in addition to new measures, Uber has a multi-step screening process for its drivers – including their Social Security information, driver’s license, insurance and car registration – all of which are run through private background-check firms. However, requirements for registration and regulations vary depending on the country for Uber – with different countries having different processes for their drivers.

Taxi
Concerns over the safety of taxi rides is certainly nothing new.

While both taxi drivers and Uber drivers must pass a background check before being able to drive, background checks for taxis vary depending on the city, in terms of their scope.

For example, in Chicago, taxi drivers can’t have been convicted of a “forcible felony” in five years before applying, whereas in New York City (famous for the strictest rules), not only do drivers have to pass health tests and defensive driving tests, but must also watch a video on sex trafficking.

Uber vs. Taxi: Cost
Uber and taxi alike have some similar metrics for determining price – including distance and time. But how do the services charge you differently, and is one more cost effective than the other?

Uber
One major difference between the way Uber and taxis charge customers is that Uber don’t charge based on moving or stop-and-go traffic, while taxis do. However, Uber does charge surge rates (for times of day or night that have a higher volume of traffic or cars on the road) – especially during rush hours.

And while Uber, unlike taxis, gives users an estimate of the fare, it cannot predict the final price of the ride due to conditions that may change.

Still, the app offers several different kinds of cars that vary in price – from standard rides to SUVs. Uber has a ride price estimator on their site, depending on what city you are in.

UberX: Uber’s standard ride – professional or average drivers, standard cars, with prices (for New York City prices) starting with a base fee of $2.55, with 35 cents per minute and $1.75 per mile. Subject to surge prices for busy times. Minimum fare is about $7.

UberXL: Meant for larger groups (up to six people), with professional and regular drives with cars and SUVs. Pricing (for New York City) starts at $3.85 base fees, adding on 50 cents per minute and $2.85 per mile with a typical minimum fare of about $10.50.

UberBlack: Uber’s Black car experience is more luxury than its regular rides – with professional drivers and higher-end cars. Base fares start at $7 (for New York City), accumulating 65 cents per minute and $3.75 per mile for a total minimum fare of around $15. UberBlack accommodates between one and four people.

UberSUV: The larger version of UberBlack, UberSUV employs professional drivers and luxury SUVs to drive up to six people. Base fares start at $14 (for New York City), with an 80-cents per minute charge and a $4.50 per mile charge added on. Minimum fares for UberSUV typically start at $25.

UberT: Ironically, Uber also offers a taxi service, which connects users of the app to yellow cabs around the city (specifically in New York City). The base fee for ordering a taxi through Uber is $2.50, with 50 cents added for every 1/5 mile and 50 cents added every minute or when the vehicle isn’t moving or is in slow traffic.

Taxi
On the other hand, taxis don’t have different payment tiers and therefore can be somewhat more of a question mark when it come to the final fare, all said and done.

Taxis in New York City have a base fare of $2.50, with an additional 50 cents added every 1/5 mile or minute. So, for a five-mile, 10-minute trip, including a 10% to 20% tip, a taxi would cost around $15 to $18.

However, taxis take into account how fast the car is moving and if it is in bumper-to-bumper traffic.

Unlike Uber, taxis don’t have surge prices – but they do charge an additional 50-cents surcharge after 8 p.m. (until 6 a.m.), as well as an additional $1 during rush hour (4 p.m. to 8 p.m.) for the normal workweek.

Has Uber Overtaken Taxis?
It’s no secret that Uber is everywhere these days – seemingly with a foot in every major city. And, according to data analyzed in a report by the economists at the New School and the University of California Berkeley, ride-sharing apps like Uber, Lyft, Juno and Via dispatched some 600,000 rides per day in the first quarter of 2018. Additionally, over some 80,000 drivers are associated with those apps.

But are taxis becoming obsolete?

According to reports even back in 2017, Uber rides surpassed that of yellow taxis, with an average of around 289,000 rides per day compared to taxis’ some 277,000 per day. Additionally, according to a report by The New York Times in 2017, Uber gained on taxis by providing service to outer boroughs in New York City like Queens and the Bronx, helping the app gain market share. And according to Crain’s New York Business, taxi trips in New York dropped some 11% in 2016, with industry-wide revenue falling some 9% to $1.8 billion.

Still, taxis come with the additional costs of medallions, which have dropped in value since apps like Uber hit the road, costing taxi drivers thousands of dollars in monthly interest.

There are only 13,587 registered medallions in New York City. But a recent law that has been contested in New York City proposes to restrict the number of ride-share cars like those of Uber to allow for better conditions for taxis.

Uber vs. Taxi Regulations
In order to combat the rapidly dropping wages of taxi drivers, specifically in New York City, New York City lawmakers enacted a law that would put a one-year pause (or cap) on the number of drivers for ride-share companies like Uber. However, Uber filed a lawsuit in opposition to the cap – citing claims that it is anticompetitive, Wired reported.

Still, officials seem to be standing firm on their decision.

“No legal challenge changes the fact that Uber made congestion on our roads worse and paid their drivers less than a living wage,” Seth Stein, a spokesperson for New York Mayor Bill de Blasio, said in a statement. “The city’s new laws aim to change that.”

Upcoming Uber IPO
But could an Uber IPO change the game even more?

The company announced its intentions to go public in December.

Uber had reportedly previously estimated the company would debut with a market value in the ballpark of $100 billion – although more recent estimates put the evaluation closer to $90 billion. And other measures like The Prime Unicorn Index have estimated Uber’s worth to be much lower at $44 billion back in November.

The Bottom Line
When it comes to safety, Uber and taxis have relatively comparable protocol. And while prices can vary drastically depending on a variety of factors like distance, traffic flow or time of the day, depending on your city or area, taxis or Uber might be more or less expensive.

So, make sure to do your research in your area and don’t forget to price in the time of day you’re hailing your ride, how many passengers you have or the neighborhood in which you’re searching for a ride.

Source: https://www.thestreet.com/technology/uber-vs-taxi-14872678

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Uber, lyft and other taxis

Lyft Is Another Step Closer to Driverless Ridesharing

Published

on

By

uber lyft

Ridesharing company Lyft (NASDAQ: LYFT) inched a little bit closer toward self-driving ridesharing last week when it said in a blog post that it’s adding Chrysler Pacifica hybrids to its autonomous vehicle (AV) testing fleet and opening a new self-driving vehicle test facility.

The new facility, located in East Palo Alto, California, will allow the company to increase the number of AV tests it can run. It will also let the company test how the systems do with different road configurations, including intersections, merging lanes, traffic lights, and similar challenges. The company said in the post that the new facility will let Lyft “further accelerate the speed of innovation.”

Lyft says that it’s driving four times more autonomous miles per quarter than it was just six months ago and has about 400 employees worldwide working on self-driving tech. That figure is likely to expand, considering that Lyft has more than 40 autonomous vehicle job openings listed on its website.

In addition to the new facility, Lyft said that it’s adding Pacifica minivans to its AV fleet, which is the same vehicle that Waymo, Alphabet’s self-driving car company, uses for its public self-driving ridesharing project and AV tests. Lyft said that, “The minivan’s size and functionality provide our team with significant flexibility to experiment with the self-driving rideshare experience.”

Why does all this matter for Lyft’s autonomous-vehicle future? Because to have a successful, public self-driving ridesharing fleet in the coming years, Lyft needs to lay the groundwork right now.

Isn’t Lyft already doing AV testing?

Lyft is, of course, already working on AV testing. The company’s original self-driving test facility has been up and running since early 2018. The company also started a partnership with Waymo earlier this year to test autonomous ridesharing. Additionally, Lyft also works with Aptiv, an AV tech company, and together they’ve created “the largest publicly available commercial self-driving program in the country” and have completed more than 75,000 rides through the partnership.

But the recent announcements by Lyft show that the company is taking its AV focus a bit further. The Pacifica minivans have been used by Waymo’s AV ridesharing program in Phoenix for more than a year now, making them a proven choice for shuttling around ride-hailing passengers. Lyft may not be ready to launch a wide-scale autonomous ridesharing service just yet, but testing out these vehicles likely means that it’s moving past earlier stages of AV testing and is now looking at how its next-generation self-driving tech can handle new vehicles.

Why this matters for Lyft

Lyft and other ride-hailing companies, including Uber, are keeping a close eye on self-driving developments and testing out the technologies themselves because it could eventually become an integral part of their business model. Research from Intel predicts that the AV ridesharing market could be worth $3.7 trillion by 2050.

Additionally, as regulations surrounding ridesharing drivers continue to increase, Lyft is likely looking to AVs to eventually replace some human drivers. Just a few months ago, the state of California introduced a bill that could pave the way for independent contractors, including Lyft’s drivers, to be reclassified as employees. If a version of the bill becomes law and other states follow California’s lead, it could significantly increase operating costs for Lyft. That could be bad news for the company, which is unprofitable right now and hoping to be in the black just two years from now.

While Lyft’s announcements may not seem all that significant right now, investors should know that these baby steps moving the company closer to AV ridesharing could have huge results in the coming years. For now, investors should be pleased that Lyft is beefing up its own AV testing. Each move the company makes now means that it’ll be much more ready for a self-driving ridesharing future.

Source www.nasdaq.com

By Chris Neiger

Continue Reading

Uber, lyft and other taxis

Uber fined $650 million by New Jersey over driver classification

Published

on

By

money

New Jersey is the latest state to say Uber’s drivers should be classified as employees rather than independent contractors. The state’s Department of Labor and Workforce Development said that because of this misclassification, the ride-hailing company owes it roughly $650 million in unemployment taxes and disability insurance, according to Bloomberg Law.

The Department of Labor reportedly has been trying to get unpaid employment taxes from Uber going back as far as 2015, according to documents obtained by Bloomberg Law. It said the company owed the state $523 million in overdue taxes along with another $119 million in interest and penalties for the last four years. Uber disputes these findings.

“We are challenging this preliminary but incorrect determination,” an Uber spokesman said in an email. “Because drivers are independent contractors in New Jersey and elsewhere.”

Driver classification is an issue that government regulators have been taking a closer look at over the past year. California passed a law in September that could require Uber and other on-demand companies to reclassify their drivers as employees instead of independent contractors. The law is set to go into effect Jan. 1. New York, Oregon and Washington state have considered similar legislation.

Uber, Lyft and several other tech companies have vowed to fight the California law, collectively putting more than $90 million behind a ballot initiative that’ll take the issue to voters next November. Many drivers have said this move is a slap in the face as they struggle to earn a living wage.

Uber’s and Lyft’s business models depend on bringing aboard hundreds of thousands of independent contractors, whose labor is typically cheaper than that of employees. That’s because Uber and Lyft drivers supply and maintain their own cars and also pay for their own health care and benefits, such as sick days or overtime pay.New Jersey is the latest state to say Uber’s drivers should be classified as employees rather than independent contractors. The state’s Department of Labor and Workforce Development said that because of this misclassification, the ride-hailing company owes it roughly $650 million in unemployment taxes and disability insurance, according to Bloomberg Law.

The Department of Labor reportedly has been trying to get unpaid employment taxes from Uber going back as far as 2015, according to documents obtained by Bloomberg Law. It said the company owed the state $523 million in overdue taxes along with another $119 million in interest and penalties for the last four years. Uber disputes these findings.

“We are challenging this preliminary but incorrect determination,” an Uber spokesman said in an email. “Because drivers are independent contractors in New Jersey and elsewhere.”

Driver classification is an issue that government regulators have been taking a closer look at over the past year. California passed a law in September that could require Uber and other on-demand companies to reclassify their drivers as employees instead of independent contractors. The law is set to go into effect Jan. 1. New York, Oregon and Washington state have considered similar legislation.

Uber, Lyft and several other tech companies have vowed to fight the California law, collectively putting more than $90 million behind a ballot initiative that’ll take the issue to voters next November. Many drivers have said this move is a slap in the face as they struggle to earn a living wage.

Uber’s and Lyft’s business models depend on bringing aboard hundreds of thousands of independent contractors, whose labor is typically cheaper than that of employees. That’s because Uber and Lyft drivers supply and maintain their own cars and also pay for their own health care and benefits, such as sick days or overtime pay.

 

“New Jersey is sending a message that the state’s labor laws aren’t dictated by corporations,” Bhairavi Desai, executive director of the New York Taxi Workers Alliance, said in a statement. “It’s a stinging rebuke of the architects of the gig economy, and we hope it permeates across other sectors.”

Even if Uber’s drivers were determined to be employees rather than independent contractors, Uber said the $650 million New Jersey tax fine would be too high — particularly if it’s based on what the company has earned in the state. Uber didn’t disclose the revenue it generated in New Jersey over the past four years, but its combined revenue for all the markets where it operated in 2018 was $11.3 billion.

 

 

 

Source www.cnet.com

By Dara Kerr

Continue Reading

Uber, lyft and other taxis

Adams Clinical removes hurdle to clinical trial participation

Published

on

By

uber

How Adams Clinical increased retention and streamlined operations by switching to Uber.

One of the hardest parts of conducting a clinical trial is identifying willing participants. Once a participant is identified, strict qualifications and an often-lengthy time commitment limits who can participate, and a lack of access to transportation can make it difficult for participants to commit to and complete the study. To help improve recruitment and retention rates, Adams Clinical offered taxi rides to their participants. However, this solution became a burden on operational efficiency since taxis were only accessible to participants who lived close by and required the staff to pay at the end of each ride.

Finding the perfect transportation solution with Uber Health

To expand their transportation offering, Adams Clinical became an early beta partner with Uber in 2016. The team started using Uber’s web dashboard to arrange and pay for rides for participants with just a few clicks. Over the three years of this partnership, the switch to Uber Health simplified operational management, while reducing time spent on recruitment with increased retention rates. The easy-to-use Uber Health dashboard tracked all the rides and processed payments from one centralized interface, allowing the staff to arrange rides without the hassle of paying at the end of each trip. This flexibility, plus the extensive reach of Uber driver-partners in the Boston area, provided Adams Clinical with the transportation solution needed to successfully manage their participants in need of rides—which removed the headache from recruiting and retaining their study participants.

The result: Improved retention rates, simplified financial records, and an overall lift in team morale

By teaming with Uber Health, Adams Clinical enjoys a number of key benefits including:

• Expanded Recruitment—Using Uber Health cut down the length of enrollment by providing a larger pool to recruit from, resulting in a 5 to 10 percent reduction in recruitment time over the last two years. 

• Centralized Billing—All rides are charged to one company credit card, which is then processed at the end of each month to streamline the amount of administrative effort required.

• Reliable Service—Each ride is tracked in the dashboard so the team knows when the participant will be arriving to help keep the rest of the study on schedule.

• Improved Retention—In the first two years of the partnership with Uber, Adams Clinical estimated up to 20 percent fewer people dropped out of a trial when transportation was arranged to and from the clinic.

• Financial Accountability—Details for each ride are available in the dashboard, and can be downloaded to a spreadsheet, offering convenient management with trial-specific reporting per participant.

• Easy to Use—Using Uber Health has been easy for both staff and participants, even among populations without smartphones or passengers new to Uber.

 

by Kendall Brown

Source uber.com

Continue Reading

Trending

TransportationVoice