Uber upsets its drivers in NYC cutting fares by 15%

Uber has dropped its prices by 15% in New York, with the cuts expected to be reflected around America, however there is no news as yet regarding whether the rate cut will expand globally. Uber's hope is that lowering prices will increase demand, which has reportedly lagged during the winter months. While Uber riders have, understandably, been positive about the rate cut, drivers are less pleased, with some now making minimum wage, and, reportedly, switching to Lyft to try to increase their income. An anonymous driver on Facebook told the Observer the full implications of the new rates: “Yes, the rate cuts have affected my earnings. I am less motivated to go out and drive. Instead, I'm focusing more on my other business…”

Uber is going for the jugular in the escalating Big Apple cab wars — with a substantial drop in prices that was scheduled to go into effect Friday morning, The Post has learned.

The rate cut is for the most popular Uber X and XL services, and was to go into effect at 7 a.m. The base fare in the Big Apple goes from $3 to $2.55 and the per mile rate will go from $2.15 to $1.75 while the per minute rate will go from 40 cents to 35 cents, sources said.

The minimum fare will drop from $8 to $7. Prices on its UberXL service will also drop by 15 percent.

Now, a ride from Midtown to La Guardia Airport that would have cost $43.67 will cost $37.12 — and a ride from Chelsea to the East Village that used to cost $13.18 will cost $11.20, said the company.

Uber has already made the cut in some cities around the country, but it will be nationwide on Friday.

The price drop means that both Uber and drivers will make less per ride, but the company says it is worth it because they expect ridership to shoot up and for drivers to waste less time driving around without a fare.

The last time Uber dropped its prices – in July of 2014 – time that the drivers spent without a fare in the car dropped by 42 percent. They expect to shave even more idle time off this time.

Some drivers, who claim they sometimes wait for up to 30 minutes between fares, say they are happy with the change.

“We need to to do something to increase the money, go ahead and do it,” said Adalgisa Sanchez, 51, who has been driving for Uber for three years. Sanchez said she takes home about $1,800 if she works 45 hours a week.

Potential customers say the price drop will make them more likely to use the ride-sharing company.

“If it’s going to be cheaper, for sure,” said 25-year-old Cody Alt of Brooklyn. Uber has been gobbling up market share ever since it came to New York City in 2011. A study released by the city earlier this month showed that Uber has replaced many yellow and green cab rides.

Taxi drivers are incensed by the move. Unlike black cars, their prices are set by the Taxi and Limousine Commission, so they can’t drop their prices to compete.

“Uber is keeping its drivers in poverty wages just so that the company can try to monopolize,” said Bhairavi Desai executive director of the New York Taxi Workers Alliance “This is horrible.”