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  • The on-demand car service known as Uber has recently slashed prices across the country

  • an action that some believe could turn the transportation market on it's head.

  • If you live in a major U.S. city and don't use your own car to get around you may have

  • heard of the ride-sharing app Uber which lets riders make on-demand requests to drivers

  • for transportation.

  • If you don't use it now investors are betting you will soon, According to AllthingsD, in

  • August, Uber had a $3.5 billion valuation with the largest backing coming from private

  • equity giant TPG and Google Ventures.

  • Forbes also rated Uber among its Top 13 startups of the year claiming the app has gained traction

  • with everyone from, "drunk college students to overworked soccer moms"

  • The cuts in prices will specifically target the UberX service and will cut prices anywhere

  • between 2 and 30 percent. Uber X is not available everywhere but the slash in prices will effect

  • 16 major cities out of the 23 where the lower cost option is available.

  • With this cut in pricing, many tech writers believe people will be opting out of traditional

  • taxi's.

  • VentureBeat writes, "In general, Uber provides a valuable service that is much more reliable,

  • dependable, and accountable than San Francisco's third-world cab system."

  • TechCrunch adds, "For a business that operates on low margins already, that's a pretty dramatic

  • reduction. And it will put a whole lot of pressure on the competition."

  • Oh and speaking of the competition it's not going quietly.

  • Lyft, the other on-demand ride-sharing app has a response to Uber's new price cuts.

  • "Uber prices will still be higher. What does a price decrease mean when there is 8-10x

  • surge pricing? It's classic bait and switch and consumers see through that."

  • And various taxi commissions attempted to impose substantial regulations on the new

  • app in some major cities earlier in the year such as D.C. and New York to keep the traditional

  • taxi service afloat.

  • "In our statute we're charged with keeping an economically viable taxi cab industry.

  • We can't make decisions that allow one element in the industry to up end all the other elements"

  • Despite ongoing fights across the country with various taxi commissions Uber has been

  • able to not only operate but thrive. The company reportedly brought in upwards of $200 million

  • at the end of 2013 and has about 1 million ride requests per week.

The on-demand car service known as Uber has recently slashed prices across the country

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B1 uber taxi app service demand cab

Uber Lowers Ridesharing Prices To Undercut Taxis

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    PKJTW posted on 2014/03/08
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