Uber and Lyft to raise prices in New York

Uber says a freeze on new licenses has already been putting upward pressure on prices

New York is Uber's largest market in the US

(Getty)

Uber’s prices in New York – its largest market in the US - are going to be higher in 2019. So are Lyft’s.

Any ride-hailing vehicles carrying passengers in the busiest areas of Manhattan have to collect a $2.75 (£2.18) fee starting January 1, a plan intended to reduce traffic and raise money for the city’s Metropolitan Transit Authority.

Uber says a freeze on new licenses has already been putting upward pressure on prices, as will a minimum wage rule for ride-hailing drivers slated to take effect later in the month.

Like any self-respecting tech company whose core product is a mysterious algorithm, Uber says it’s not sure exactly what prices will look like next year, saying only that they’ll be higher.

Uber usually opposes anything that makes its service more expensive.

It has been relentless in its pursuit of cheaper prices as it has evolved from a luxury black car service to a company seeking to lure bus riders into carpooled commutes. But while the company has fought against both the new wage rules and the freeze on new drivers, it has embraced the congestion fees.

Both Uber and Lyft supported the $2.75 charge, and are actively lobbying in Albany, New York and elsewhere for more ambitious plans to charge all vehicles to enter highly-trafficked downtown areas.

Bloomberg