The crowdsourced cab service, Uber, is currently taking the world by storm. Commuters use the service’s smartphone app to order a car, a request that is forwarded to the nearest available driver who then makes the pick-up.
Uber itself determines the cost of the fare so no money changes hands in the cars. Uber determines its fares by the service it offers, by the time a journey takes and sometimes by the distance traveled. The price also increases when demand is higher. On New Year’s Eve in 2011, for example, fares were reportedly seven times the normal rates.
It’s fair to say that Uber has alienated the official taxi drivers in many cities around the world. The company has come up against numerous backlashes and regulatory issues. But it is nevertheless wildly popular.
So here’s an interesting question: is Uber cheaper than conventional taxis? Today, we get an answer thanks to the work of Cecilia Mascolo at the University of Cambridge in the U.K. and a few pals who have compared Uber’s prices with those of Yellow Taxis in New York City. They say the ability to compare prices in this way should help commuters choose the cheapest options and thereby help control costs for all cab users.
Read the full article at http://www.technologyreview.com/view/535886/data-mining-reveals-when-a-yellow-taxi-is-cheaper-than-uber.