Uber vs. Yellow Cabs in New York City: What’s the Difference?

Taxis do not have surge pricing, but riders might have to wait longer when demand exceeds supply. Taxis do, however, add a $1.00 surcharge in the evening (8:00 p.m. to 6:00 a.m.) and a $2.50 surcharge during rush hour (4:00 p.m. to 8:00 p.m.), Monday through Friday.

If Uber’s surge pricing is in effect, you will probably pay a lot less by taking a cab, if you can get one. Surge pricing will at least double your usual fare, and Uber has reported charging customers as much as $39 per mile.

Yellow Cabs have regulated fares to and from the Newark International and John F. Kennedy International airports. For trips between Newark International Airport and New York City, the price is the regular metered fare, plus a $20 surcharge, plus tolls. For trips between John F. Kennedy International Airport and Manhattan, it is a flat fare of $70, plus several surcharges including: $0.50 MTA State surcharge, $1.00 improvement surcharge, $5,00 rush hour surcharge (4pm to 8pm weekdays, excluding legal holidays), New York State Congestion surcharge $2.50 (Yellow Taxi) or $2.75 (Green Taxi), 75 cents for all trips that begin, end or pass through Manhattan south of 96th street, and tolls. The regular metered fare applies to all trips to and from LaGuardia International Airport.

Payments and Tipping

Before you can call an Uber, you must download the app onto your smartphone and register a credit card or PayPal account to your Uber account. Uber automatically charges your account at the end of the ride. When you take a cab, you can pay with cash, credit card, or a payment app on your phone, like Apple Pay.

Tipping is different with each service, too. Uber allows riders to tip their driver through the app after they have rated their ride, once complete. You have 30 days to add a tip once your ride is complete.

NYC cab drivers are required to accept MasterCard, Visa, Discover, and American Express credit cards and MasterCard and Visa debit cards with no minimum fare requirement. Passengers pay for rides by swiping their card through a card reader and can see the transaction details on a monitor in the back seat. Passengers must sign for card transactions over $25. Uber’s receipts are emailed to the passenger and available through the app.

Tipping is customary for cab rides. You can add the tip to your credit card or pay it in cash. Most riders who pay by credit card tip 20%, which might have something to do with the automatic tip options offered by the credit card machine: 20%, 25%, and 30%. You can always calculate your own tip or decline to tip altogether for bad service.

Vehicle Types

Uber’s vehicles range from standard consumer cars like Honda Accords in the UberX class to upscale vehicles like all-black Cadillac Escalades under UberXL. Uber policy is that all cars must be no more than 16 years old and must be easy to enter and exit and a four-door (so no pickup trucks or compact cars).

Taxicabs hold either four or five passengers, depending on the vehicle model. There is an approved vehicle list for taxicabs. All taxis are painted yellow, except for taxis in boroughs other than Manhattan, which are green. If you want a fancier ride, you will need to call a traditional private car service or use Uber.

Customer Service

Since passengers request all Uber rides through the app, there is no waiting on the street and getting drenched trying to hail a ride in bad weather. Nor will you find yourself standing alone on an empty street late at night trying to catch a cab. The app lets users know when the driver has arrived, so passengers can wait indoors.

Uber actively seeks and reviews passenger feedback on drivers. After each ride, Uber asks the passenger to rate the driver through the app and add comments. Uber will stop using a driver who gets too many low ratings. Uber drivers also rate passengers, and a rider’s cumulative rating can be found in the app. Some drivers avoid passengers with low scores. Uber may temporarily ban passengers for inappropriate or unsafe behavior and permanently refuse service to riders who have been aggressive, violent, or disrespectful.

What if you have a bad experience during your ride? The NYC Taxi and Limousine Commission posts a passenger bill of rights inside the cab that drivers and cab owners must adhere to. If you want to make a complaint, the NYC TLC directs passengers to call 311 or make the complaint online through this form.

To file a complaint about a bad taxi ride, the passenger should first get a receipt from the driver that shows the taxi’s unique four-character medallion number. You can also get the medallion number from the taxi’s license plate, roof, or inside the car on the back of the partition. You can then file a complaint online through the NYC Taxi and Limousine Commission website. If the driver pleads guilty, they will pay a fine and the case will be closed. If the driver pleads not guilty, there will be a hearing that requires you to give testimony by phone or in person.

The Bottom Line

The choice between Uber and yellow cabs largely depends on your priorities:

• Cost: If surge pricing is in effect, a yellow cab could be cheaper.
• Convenience: Uber allows you to track your ride and book without needing to hail a cab on the street.
• Availability: If you’re in an area where cabs are plentiful, a yellow cab may be just as fast and more affordable.

Ultimately, each service has its benefits, and understanding how their pricing structures work can help you decide the best option for your trip in New York City.