In recent years, ride-sharing services like Uber and Lyft have penetrated nearly every major city, effectively competing with taxis. While it may seem convenient to summon an Uber with just a tap on your smartphone, choosing between an Uber and a taxi can be difficult considering the cost-effectiveness.
Taxi fares vary by location, as do Uber fares. Uber also offers different levels of service based on your preferences. Here's how local rates compare to standard UberX rates:
- In Los Angeles, taxis charge $3.10 for the first 1/9 mile, 33 cents for each additional 1/9 mile, and 33 cents for every 37 seconds of waiting. However, UberX charges no base fare, which is 28 cents per minute and 80 cents per mile. (Reservation fee is $2.30.)
- In Washington, D.C., taxis cost $3.50 for the first 1/8 mile, $2.16 for each additional mile, and about $2 for every five minutes of wait time. UberX has a $2 booking fee and a base fare of $1.21, which works out to 30 cents per minute and 80 cents per mile.
- In New York City, taxi fares start at $3.00, 70 cents per 1/5 mile, and various surcharges. UberX's base fare is $2.55, with charges of 35 cents per minute and $1.75 per mile.
- In Philadelphia, taxis charge $2.70 for the first 1/10 of a mile, 25 cents for each additional mile, and 25 cents for every 37.6 seconds of waiting. UberX charges a $2 booking fee, with a base fare of $1.38, 32 cents per minute and 92 cents per mile.
The cost of your trip depends on many factors, including distance traveled, traffic conditions and time of day. While some rates are similar in structure and amount, there's one major difference: Taxis charge per mile when driving, but by the minute when idling. Uber, on the other hand, charges by the mile and minute, regardless of whether the car is running or idling, with a few exceptions.
If you're considering which service to choose to get to the airport, the cheapest option is almost always Uber. In fact, there are only three major airports (New York's LaGuardia, New York's JFK, and Boston's Logan) where it's cheaper to take a taxi than to take an Uber.
There are other variables to consider when comparing the cost of an Uber versus a taxi. For example, many taxi passengers tip their drivers around 20%. Uber also offers a tipping option.
Uber’s surge pricing is another major variable that affects costs. Surge pricing essentially means that Uber's costs vary based on demand, so expect to pay higher fares on nights when taxis are in high demand, such as New Year's Eve. In addition to minimum fares, Uber also charges cancellation fees, which vary by city.
If you open the Uber app and see the surge price of 1.8, a $10 trip will cost you closer to $18. Avoid rush pricing by waiting a few minutes or walking a few blocks in the other direction (if you're in a safe area). One customer infamously paid $14,000 for a 20-minute Uber ride due to price spikes, so be careful how much you charge.
Uber is generally cheaper for faster long-distance trips, while taxis are a better option for trips in congested areas like New York City. That said, location is also important. According to RideGuru's analysis, Uber is cheaper than taxis in cities like San Francisco, Los Angeles, and Detroit, while in New York City, taxis are even cheaper. In cities like Washington, D.C., and Nashville, it's almost a tie. A study by GoBankingRates found that Uber is the more economical option in 16 of 20 major U.S. cities.
