Uber

[Undertoad]

Why do professional taxis cost more?

The biggest reason is licensing of taxi medallions. You can't drive a yellow cab in NYC if you don't have a few hundred thousand dollars for a medallion. It used to be over $1,000,000 for a single car, before Uber.

And then there's cost of sales, advertising, business insurance, liability, the real estate to warehouse all the cars, effects of regulation, cost of recruiting, hiring, and maintenance of personnel in a specific location, hiring people on a specific schedule where they may be idle, hiring managers as well as operators, having enough cars available for unpredictable conditions...

And are you aware of "surge pricing" where ride sharing can be more expensive than professional taxis, but professional taxis are nowhere to be found?

[Gravdigr]

Thanks for bringing that up, UT. So I didn't have to.

NY hot dog stands are no better...





:

Ten years ago in my humble little town, an eight mile ride in a taxi was $17. And ya had to tip the guy. It's a small town, you're getting that same driver next time. No tip this time? What do you think the chances are he'll be on time next time?

[tw]

Originally Posted by Undertoad

The biggest reason is [i][b]licensing of taxi medallions.

Profession cab companies around here have no medallions and still cost more. They know what their costs are. To obfuscate the issue, you confuse NYC cabbies with others who have no medallions. These still cost more because they charge based on actual costs.

Once we include everything you have said correctly, then you really agree with everything I have said. Thank you.

Meanwhile, Uber drivers often make far less than they realize. $5 profit for a half hour fare is profitable? Yes. It explains so much dissension among Uber and Lyft drivers. Of course, the business model makes it almost impossible for them to Unionize. So is it really a business - or a hobby?