Uber Reduces Prices in Vegas by 30%
Earlier today I covered Uber’s announcement that they will begin operating at McCarran International Airport immediately. Shortly after publishing that post I received another email from Uber. This time it was to announce that they are lowering rates by 30%. Here is what it said:
CHEAPER THAN EVER
We’re dropping prices in Las Vegas by 30%
From late nights to early flights to cruising The Strip or holiday shopping–you can always rely on Uber to get you where you need to go. We are making uberX and uberXL some of the most affordable rides in town.
Back in October when Lyft began operating at the airport I posted a little price comparison between taxis, Uber & Lyft. With these new rates, I thought I would update it a bit. Spoiler: Uber is significantly cheaper!
Here were the rates before (As of now Lyft & Taxis are the same as before):
- UberX/Lyft: $2.40
- Taxi $3.30
Cost Per Mile
- UberX/Lyft: $1.85
- Taxi: $2.60
Cost Per Minute
- UberX/Lyft: $.30 (cost even when vehicle is moving.)
- Taxi: $.50 (only when below 8-12 MPH)
Notice that UberX/Lyft had the same prices. Now let’s look at Uber’s new rates.
- Base Fare: $2 (16.6% reduction)
- Cost Per Mile: $1.10 (40% reduction)
- Cost Per Minute: $.20 (33% reduction)
I suspect this is good for consumers, but bad for drivers. Uber was already taking a higher portion of revenue from drivers, so perhaps that is how they are justifying this decrease. I’m not sure if Lyft will match, but it seems to me that they have to reduce their prices somehow, because Uber is now significantly cheaper.
Taxi companies are more regulated when it comes to fares, so I don’t know how much they can change their pricing. With that said, look at the per mile rate difference between Uber and taxis now. Taxis cost more than double per mile and have a higher base fare. The only caveat is that rideshares charge per minute as well, whereas taxis only charge for time when the car isn’t moving.
Uber has declared war in Las Vegas. I always thought ridesharing costs here were too high compared to other cities and Uber has now changed that. Not only is it going to be convenient for a lot of people to use Uber at the airport, but this reduction means it will be much more affordable to get around town as well.
What do you think? Is this good for tourism? Good for customers? Bad for the drivers? Let me know in the comments!