Starting this week, San Fransisco- based startup Uber will begin to offer users in NY the option of booking a hybrid car instead of a taxi. This option will cost about 10 to 25 percent more than a normal taxi, but is cheaper than the 40 to 100 percent premium users pay for a black town car, according to The New York Times. Since 2011, the car service app has raised $43 million from investors, and is trying to profit by creating an efficient way to connect drivers and passengers.
The software used by Uber attempts to predict locations where there is likely to be a high demand for cars, and notifies drivers of this through a smartphone app. Additionally, the company does not provide its own cars, but rather works with existing car services, which get a cut of the fare.
Thus far, NY has maintained a good relationship with the car rental app, despite the regulations in some cities against car services acting as taxis. Alex Fromberg, spokesman from the Taxi and Limousine Commission, told The New York Times that as long as Uber continued to conform to the city’s rules, then “we are highly supportive of ways to use technology to enhance service to the riding public.”
Travis Kalanick, Uber’s chief executive, declined to report exact numbers, but said that the company recorded 20 to 30 percent revenue growth month to month over the last year.