Uber cuts NYC prices to compete with yellow cabs

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NEW YORK (AP) – Car service app Uber Technologies says it is temporarily cutting its prices in New York City with the aim of making it service cheaper than a yellow cab.

The San Francisco start-up said Monday it is reducing fares by 20 percent for its UberX service, which allows smartphone users to hire drivers of livery cars. It does not apply to customers using the app to e-hail a yellow cab.

Uber New York City general manager Josh Mohrer says that if the price cut experiment works, it will continue.

The Taxi Workers Alliance, which represents yellow-cab drivers, says the move means less income for its drivers.

The Taxi and Limousine Commission said that as long as high standards are maintained consumers will choose the best service for their needs.

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