Did you hear about last week, when Uber lowered their fares? Well, it happened, and the NYC Taxi & Limousine Commission was quaking in their boots.

How can we make that assumption? Well, it isn't hard. Mayor de Blasio went to war with Uber last summer which prompted a $2 million traffic study to see whether Uber really does increase congestion in New York City. The result? A resounding no.

Guess what? The Taxi & Limousine Commission weren't the only ones majorly bummed about the fare cuts. Who else was bummed? That's right; Uber drivers.

According to CBS, organizers are calling on Uber drivers to go on strike today. Instead of driving, the Uber drivers on strike will picket outside Uber's headquarters in Long Island City at noon today.

When Uber slashed its prices by 15% last week, the company claimed the fare reduction would mean more work for its drivers.

They cut its base fare for UberX from $3 to $2.55, and its per mile rate from $2.15 to $1.75. UberXL's rates dropped similarly.

[anad]

"Since we cut prices last time, our outer borough business has more than doubled," said Josh Mohrer, Uber's New York general manager.

Apparently, the tactic is working: Uber said its seen a 20% increase in hourly earnings since the fare cut. 

However, plenty of drivers are entirely frustrated by the decline in Uber's prices.

"When we get into the Uber business we have to buy a car, so I have five years more to pay the car," said driver Juan Batista.

In response to the fare cuts, one Uber driver informed us that Uber takes a 25% cut of every trip's fare, but that the Uber driver has to pay for gas and all car payments.

theweekinnews #uberstrike this weekend. #tacobell is expected to lose a ton of midnight business. #latenightsnack #TheWeekInNews #funnynews


Uber has said that if the price cuts don't produce expected results after a few months, they'll return to their old prices.

However, the Uber drivers protesting on a Facebook page organizing the strike aren't interested in waiting a few months to see how the experiment plays out.

"With these prices I won't do it, I'm going to quit," driver Rafael Espinal said.

Our advice for you? If you were planning to take an Uber around 12 p.m., we'd suggest just taking the subway. Lots of Uber drivers will be busy protesting.

Check out Uber Just Lowered Their Fares in NYC

[via CBS] [Feature Image Courtesy New York Business Journal] 

recent

popular