For right now, Uber is only focused on putting taxis out of business. But in the long run, the company wants to be the ultimate way to get from A to B, and that means challenging public transit like buses. A new option for $5 fixed-rate rides in New York City gives us a peek at how that might work.
UberPool is an existing option that allows multiple riders going to similar destinations to split the cost of a ride. What Uber is now offering in downtown Manhattan is a flat-rate version of the same. For rides starting and ending below 110th Street during rush hour, Uber will simply charge you a $5 flat rate. More importantly, that rate is fixed–no surge pricing. During the mornings, you’ll have to walk to a nearby intersection to get picked up, whereas on nights and weekends, you’ll get taken from door to door.