Despite the City’s Whining, Uber is Proving to New York That Capitalism Works

  • UberX grew by almost 600% in NYC
  • Uber is doing over 5xs the trips in upper Manhattan and the other boroughs than are the traditional cab companies
  • They have begun to focus on low-income areas of the city, due to incredible demand
  • The reasons: Uber is safer, cheaper, and reduces traffic
  • It also is creating self-reliant jobs – over 10,000 in the next year

As you can imagine, the city officials (and the crony insider-dealing cab medallion owners) are PISSED. Capitalism is bringing creative destruction to The Big Apple. And it is awesome.

Via The Federalist

Uber has big plans for New York State, but many people, including New York City Mayor Bill de Blasio, a proudly progressive Democrat, are wary of the company’s growth. Critics claim the service is unsafe, leads to excessive traffic congestion, and unfairly competes with the city’s yellow taxis. These concerns are overstated, while Uber’s benefits are real.

Given the ridesharing firm’s success in expanding access to transportation in underserved boroughs in New York City, progressives should welcome Uber instead of trying to artificially limit its growth.
The data show a dynamic transportation market emerging across the city. In 2014, UberX, Uber’s cheapest, most popular offering, grew impressively in New York City, from 287,000 rides provided in January to 1,594,000 in December.

Uber Expands to Underserved Neighborhoods
UberX’s popularity has led its drivers away from “core” Manhattan (south of West 110th Street and south of East 96th Street) to noncore Manhattan neighborhoods long underserved by yellow taxis. In December 2014, 27 percent of UberX pickups were outside Manhattan or city airports. For comparison, less than 6 percent of yellow taxi rides begin in the outer boroughs (excluding airports) and the northern tip of Manhattan.

Uber is not only moving away from downtown and midtown Manhattan, but also expanding into low-income neighborhoods. Over the course of 2014, monthly UberX pickups in historically low-income neighborhoods such as Astoria, Harlem, Jackson Heights, and Washington Heights grew twelve-fold or more. Of December UberX pickups in non-core Manhattan, 60 percent were in ZIP codes with median household income below the non-core Manhattan median—up from 54 percent in January.

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