Uber has temporarily cut the price of its cheapest service, UberX, by 20% to match the rate of New York City’s yellow taxis.
The move follows similar price decreases in San Francisco and Boston.
Most analysts see the move as an effort to undercut competitors like Lyft and Hailo, as well as attracting newcomers.
Uber drivers – who are paid around 80% of the total fare – will be forced to accept lower payments as a result.
In a blog post announcing the fare changes, Uber countered: “What we’ve seen in cities across the country is that lower fares mean greater demand, lower pickup times and more trips per hour – increasing earning potential and creating better economics for drivers.”
In June, Uber raised $1.2 billion in capital, in a move which valued the car-sharing service at more than $18 billion.
However, Uber has faced competition from other companies, questions from regulators and angered traditional taxi drivers in cities across the globe, from Berlin to Paris to Madrid.
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