When Is It Better to Take a Taxi Than a Rideshare?
When you need a ride, are you sure you know what is the best and cheapest option? Should you open one of your ridesharing apps, or are you better off going back to the old school and getting in a cab? It is difficult to immediately understand which one will be cheaper. After all, rideshare app pricing formulas are intentionally volatile, but you also won’t know how much your taxi ride will cost until you get to your destination.
Apart from the opacity, there is a slight lack of available information that you can use to read the tea leaves to figure out which option is best in a given situation. To do this, let’s start with the average taxi prices compared to ridesharing in the largest cities in the country.
New York
Taxi
Starting rate: $2.50.
Distance fee: $0.50 per ⅕ mile.
Time Charge: $0.50 per minute
Uber
Starting rate: $2.55.
Distance fee: $1.75 per mile.
Time Charge: $0.35 per minute
Chicago
Taxi
Starting rate: $3.25.
Distance fee: $2.25 per mile
Time fee: $0.25 for 36 seconds.
Uber
Starting plan: $1.87
Distance fee: $0.85 per mile
Time Charge: $0.30 per minute
Los Angeles
Taxi
Starting rate: $3.10.
Distance fee: $2.97 per mile.
Time fee: $0.33 for 37 seconds.
Uber
Starting rate: $2.30.
Distance fee: $0.80 per mile
Time Charge: $0.28 per minute
Right from the start, Uber has offered a more competitive pricing model than the regular yellow cab — if only it were that easy. Due to some additional factors, there are certain situations where using a taxi is more important than getting a car from car sharing apps, no matter what city you are in.
When is a taxi cheaper?
Despite lower upfront fares and time/distance fees, it’s not always cheaper to use the rideshare app. During time windows when transport is in high demand, rideshare apps will implement “sharp pricing,” the practice of increasing their regular rate by a predetermined percentage based on how many people try to use their service. Typical times for price spikes are weekend evenings and weekdays during morning and evening commutes (for example, 7am to 9am and 4pm to 6pm).
In addition, “weekend” holidays such as New Year’s Eve and Halloween are a major driver of price increases. During these periods, it is best to take a taxi, whose fares do not change depending on demand. Aside from the price, taxis also tend to be much more affordable during these hours; you don’t need a smartphone or internet connection to greet them if you’re in an area where they’re common – just wave your hand and have some fun.
When a ridesharing app is cheaper
There are a few cases where using a ridesharing app can be cheaper than taking a taxi. The first time you are traveling alone. This is because some companies allow you to opt for the pool option, which can save you a decent chunk of your trip. With UberxShare, you can save up to 20% on your total fare, with no more than eight minutes added to your total travel time. This discount can bring the total fare down to the cost of a taxi ride with minimal inconvenience. Under the right circumstances, this choice is not difficult.
The second time a rideshare is a better option than a taxi is when you’re on your way to the airport. Of the 25 busiest airports in the country, according to Money.com’s Sergei Khlebnikov , there are only three airports where taxis are cheaper than Uber (sorry, customers at Laguardia, Kennedy and Logan airports). . This is because taxis usually have fixed prices for airport rides, while rideshares use an algorithm to determine their prices (meaning if you go to the airport during off-peak hours, you will probably get a lower rate) .
The third case is during off-peak traffic hours. If you want to rent a car in the middle of the day or early in the morning, you will most likely not experience price spikes. Because of this, you will be able to benefit from comparatively low initial fares as well as low time and distance charges.