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.
Price Comparisons
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):
Base Fare
- 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)
New Rates
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)
Analysis
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.
Conclusion
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!
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[…] the same day that Uber came to an agreement to operate at McCarran International Airport, they announced a 30% reduction in the rates. I assumed it was only a matter of time before Lyft followed suit and alas I just received the […]
Dirty scumbag criminals taking advantage of uneducated drivers who don’t realive with maintence and tax and fuel they are making less Tha minimum wage.
Uber is a very good wat to travel. The problem is in lasvegas is that the rides are short because evrything is so close. That creates a problem for uber driver’s. Getting only a few bucks a ride makes in not worth the hassle to locate a passager just to go less than a half a mile for a two buck split. Reduced rates by 30% is a hard hit for the expense of maintaining a car and gas by the end of the year. And the cost of a state business lisence and county is 245.00. and maintaing medicle insurances is 500-900 a month. Very good service but is it worth it by giving practically free rides and people dont know how to tip their driver for this service .
I am an Uber driver and I was absolutely floored when they lowered our rates by 30%. It’s almost not worth driving with rates this low right now in Vegas due to increase in number of drivers and decrease of rates. I am just ashamed of Uber for screwing over the drivers right now.
I’m uber & Lyft driver and I totally have to agree it’s not worth driving to overcome the gas prices the wear and tear on my car for $8 an hour. here’s what’s going to happen they’ve already oversaturated with drivers. So drivers the that do stay are going to be your below standard drivers, it’s not cost effective
When uber lower the prices I stop driving because I’m wasting my time and money on gas. In Las Vegas 80% of the rides are 5 to 15 minutes away. So drivers are not happy. They need to bring the prices back. I know lots of uber drivers and there not happy and they stop driving for uber
I used Lyft from LAS last week, what a shit show. You’ve got to walk all over the place, in the freezing outside, with no signs to find it.
Unbelievabley picking up from the Casinos was even worse. I called the driver and he told me I had to walk all the way to the other side for the ride share pickup. Ended up getting a nice a cab.
The logistics are beyond horrendous.
Figures… left Vegas this morning after using Lyft for the long weekend. Lyft drivers there were pretty open and supportive of Uber though.
Well, good that Uber can use the airport now, but it would have saved me a lot of walking if it had been working before Travel con II!
By the way, for them that wants to know, yes, you CAN walk from McCarran to the strip. You just have to ask around for the route. It takes a fast walk of about 1.5 hours or so.
I was in Vegas over the holiday, wished Uber was active then. I tried calling but the driver told me they were not allowed yet. This is good news though, nice to have competition to help visitors save a few bucks.