Ride-sharing startup Sidecar has dropped its prices in Chicago, one day after competitor Uber announced a similar move.
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Ride-sharing services such as Sidecar, Uber’s uberX and Lyft use a crowd-sourced labor model where everyday people with their own vehicles are the drivers. Consumers can request on-demand rides on their smartphones, and all transactions are cash-less because customers’ credit card information is saved in the companies’ systems.
Sidecar and Lyft call their rates “suggested donations,” and passengers are free to pay more or less than what the companies’ apps recommend.
Sidecar said Friday that it has lowered its suggested donations by 30 percent. For a ride from Chicago Avenue and Larrabee Street to Sheffield and Armitage Avenues, for example, the suggested donation is $5. Sidecar said the same ride would cost $7 via Lyft or uberX. Going from Clark and Addison Streets to State and Lake Streets, meanwhile, should cost $9 via Sidecar versus $14 for Lyft and $15 for uberX.
According to Sidecar, its rates are now 25 to 50 percent lower than competitors “on common routes.”
Uber announced Thursday it has cut its minimum uberX fare in Chicago to $4 from $6. The service still costs $1.75 per mile or 40 cents per minute, depending on the vehicle’s speed, and carries a base fare of $3.15. Uber has reduced its ride-sharing fares in other cities, including San Diego and Boston, amid heightened competition from Sidecar and Lyft. Uber’s other offerings include an on-demand taxi service and its flagship black car service.
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