Is Uber always cheaper than a taxi cab?
The Guru Take
Generally yes under posted and standard rates. However...
If you compare the standard rates that are calculated based on time and distance, Uber is cheaper than taxicabs in almost every city, if not all. However, the scale can tip the other way under certain conditions:
- Surge pricing of Uber. Uber, based on supply and demand can change their rates by adding a multiplier. During busy times, Uber can exceed the cost of a taxi.
- Upfront pricing of Uber. Uber is experimenting with setting prices for trips that deviate from traditional time/distance based calculation. This is suspected to be based on consumer behavior and demand. (For example, business travelers or airport pickups tend to be ok spending more, so they may up charge for those situations.)
- Additional fees of Uber. There can be additional fees for Uber that can creep up the prices. For example, in certain cities, Uber may charge a “long pickup fee”, where the time and distance is charged for the drivers to pick up the riders. (Ref: What are Long Pickup Fees by Uber? When does it apply?)
- Uber’s larger car types. Uber charges differently for different vehicles. Their upscale services (such as Uber Black and Uber SUV) can cost more.
- Great tip: UberXL which can hold more passengers and cargo will cost you more. However, Taxi Vans, in cities where the prices are regulated, cost the same as regular taxis (sedans). Try comparing the prices of UberXL and Taxi Vans. Taxi Vans are cheaper in most markets. (Van Taxi vs. Uber XL: A Cost Comparison)
So, there you have it. You are now an expert.
Oh, and of course, keep using RideGuru's Fare Comparison Calculator to compare the rates!
ippei
1202
Uber Driver, CEO of TaxiFareFinder and Unleashed, LLC
Comments
Uber is ridiculously cheap, but let's all remember they're losing money on every ride