Service Apps put Old School to the Test

Service Apps put Old School to the Test

By Jay-Anna Mobbs


The ironic yellow New York cabs are facing some tough competition as services apps are on the rise.

A Morgan Stanley report has found in April last year, 13, 587 yellow cabs in New York City completed 11 million trips, a fall by 9% on the previous year.

However, these numbers show that yellow cabs are still more popular compared to Uber, who reportedly had 4.7 million trips.

The yellow cabs are under pressure as they hold a 24 hour service, which means the vehicles are warn and dirty, compared to Uber whose cars are privately owned and face less pressure meaning their cars are better maintained.

The boom in service apps has also led to higher congestion in New York City, which has found to have an increase of 600 million vehicle miles annually.

The New York City Mayor Bill de Blasio, said while he would not abandon the yellow cab industry, they must face the natural competition.

“Free-market dynamics…created an opportunity for Lyft, Uber and others, and the taxi industry has to learn from that,” he said.



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