Uber shuts down taxi service in NYC

Oct. 16, 2012

In New York City, Uber is over. The mobile ride-finding and payment service has called an end to its pilot program that allowed New York area patrons to use the UberTAXI app.

Uber's apps let users summon a car service, set up a ride and pay for the ride all through the app. Its test program for its UberTAXI app in New York City was aimed at yellow cabs, limos and for-hire cars.

According to a post on the company's website, company co-founder Travis Kalanick explained it was a matter of supply and demand:

Unfortunately, as many of you have noticed, there haven’t been enough available TAXIs. Demand far out-stripped supply, making you feel pretty lucky when you got a yellow from your iPhone. the supply of taxis couldn't keep up with the demand for cabs through the application.

Uber has also had some troubles with New York's Taxi and Limousine Commission, problems Kalanick said contributed to the company's inability to meet demand.

(Uber hasn't just had issues in New York City. Mobile Payments Today covered the company's impasse with the Washington DC city council earlier this year.)

Kalanick said the company will still continue to provide service in New York for limos using its Uber Black app as well as its lower cost UberX app. He also said he has hopes the UberTAXI app will be made available again next year.

For more stories like this, visit the mobile/digital wallet research center.

Topics: In-App Payments , Mobile Apps , Mobile/Digital Wallet , Regulatory Issues , Trends / Statistics

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