Q New Media Editor / Chris Bundas –
While the company continues fighting with the city over the legalities of its services, yesterday afternoon Uber launched its low-fare taxi service in Toronto.
Promising to beat taxi fares by 40%, a ride from Bay and King to the Yonge-Eglinton area will cost $12 using UberX, compared to a $19 cab fare, as reported by Mississauga News.
Traditional taxi services are threatened by Uber and other car services similar to it, fearing the addition of Uber may cost them their livelihoods.
Uber states drivers can earn dramatically more working for their company opposed to a traditional taxi service than for a cab company. UberX claims NYC drivers earn an average of $91,000 a year compared to the average cab driver income of $30,000.
Drivers for Uber only pay 20% of their fares to the company while pocket the other 80%.