January 11, 2022


Dhruti Randeria


When visiting a new city, people need an affordable and reliable means of getting around town. While people may think that yellow taxis are the best means of travel, the rise of Uber might suggest otherwise.  

We then find ourselves at crossroads leaving us with nothing but a comparison: We will find the answer by comparing the two services and assessing their requirements. 

Yellow Taxis

If you have been to large cities in the USA, particularly New York City you will notice something. There is a high density of yellow cars on the streets! These taxis are the most common and traditional method of transportation in the city. 

These yellow taxis held the top spot for local commute before Uber arrived. But, the fact that Uber holds a fair share in the transportation industry proves that these taxis were lacking in some way or the other. 

Uber Cabs

Uber cabs have been a great transportation app, proving to be a great alternative to commuters. Since its success in the USA, this group has managed to launch operations in several markets around the world. 

Perhaps a great deal of Uber’s success comes from the fact that users can pre-book rides and get an estimate. Also, the company does not actually own all of the vehicles as that could be very problematic. 

Uber comes with more options than the local yellow taxi, the differences between Uber and taxi services are as stated: 


Fare Calculations

One very distinct difference between these two services is yellow cabs do not give an estimate before a ride but Uber does. Prices are made estimated on the basis of distance and approximate time required to reach the destination. 

Uber cabs implement surge pricing which is basically higher prices due to certain circumstances. 

Surge pricing comes into effect when:

  • Demand is high, 
  • Cab availability is low
  • Weather conditions are bad 
  • High traffic 

Luckily, surge prices revert to normal once conditions regularize. 

On the other hand, yellow taxis do not have surge charging. In fact, for certain locations like the John. F Kennedy and Newark International airports, prices are regularized. This is good news for people who constantly visit the airport. 

Payment Method

Both the taxi services provide very different payment requirements. 

Uber cabs require users to download, install, and register on the app using a credit card or PayPal account. After rides, passengers can choose from a few options, credit/debit card, cash, or mobile wallets. Receipts are digital and available through the app. 

If you want to invest in an Uber clone app development you could introduce many payment methods to suit more users. 

With yellow taxis, drivers are required to accept payment through a range of cards (Mastercard, Discover, American Express, Visa, etc). Passengers will pay by swiping their card across a card reader while details are displayed on a monitor. For card payments of more than $25, passengers have to provide their signature.  


Uber gives passengers the choice of tipping drivers after a ride within a time frame of 30 days. During which, users can give a rating and tip the driver. Unfortunately, this method does have a disadvantage. 

Users might forget to rate and tip the driver or might just ignore the fact they still have to do it. But with your app like Uber, things can be different. During Uber clone app development, you can make it mandatory to tip drivers.

This percentage can range from 1% to 30%, letting users choose is crucial! 

While yellow taxis immediately add a tip to the final bill. The tip is usually added in an amount of 20%, 25%, or 30%. But passengers can override this and calculate their own percentage or choose to avoid tipping if the ride was terrible. Most users would want to add a tip that is not so much. 

Vehicle Type

When it comes to Uber, there are several types of vehicles to choose from (UberX, UberXL, UberBLACK, UberSUV). This ranges from basic Honda Accords to up-class Cadillac Escalades. 

All cars are no more than 15 years old and are comfortable for any passenger. Uber specifies that all vehicles must have four doors.  

The majority of yellow taxis are of one kind, a Ford Crown Victoria. There is an approved list of vehicles that can be used as yellow taxis. Even if riders don’t know what a Ford Victoria Crown looks like they will easily identify the cars. It is mandatory for them to be painted yellow!


There are a lot of differences between traditional yellow taxis and Uber cabs. While yellow taxis do have price restrictions in some instances. Uber cabs have many more advantages than yellow taxis that commuters might prefer. This is exactly why developing your own Uber like app has good chances of being accepted by the public. 

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