Business: The Uber Effect on New York

Uber presents a lucrative opportunity for New York taxi drivers with potential salaries of $5,000/month, and they have started to cash in. Since 2012, Uber has accumulated 15,000 drivers in New York. As a result, the number of cabs has decreased significantly. In an effort to replenish the New York cab industry, the NYC Taxi & Limousine Commission has piloted an initiative to convert 400 used cars into yellow cabs. David Beier, the president of the Committee for Taxi Safety, comments, “Right now there is a driver shortage. Uber has expanded unbelievably by running a ‘bait and switch’ campaign.” The ‘bait and switch’ refers to Uber’s consistent slashing of fares and promotional deals, which upsets many drivers. However, the resulting higher passenger volume can compensate for the lower fares. Regarding the conversion of used cars into cabs, Uber states, “anything that opens up more opportunities for drivers, as the Uber app did three years ago, is great for riders and great for cities.”

Contributor: Elaine Chen


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