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Question of the Day - 17 June 2025

Q:

What has the rise of Uber and Lyft done to the taxi business in Vegas?

A:

The short answer: a major rise in competition, thus a major drop in market share, revenue, airport pickups and dropoffs (the bread and butter of the taxi industry), and income of individual cabbies. 

None of that's a secret; in fact, it's self-evident that the rideshare companies have significantly disrupted the traditional taxi and limousine business. Why? First, app-based booking better fits traveler behavior, especially tech-savvy visitors. Second, the convenience and transparency of rideshare pricing have helped Uber and Lyft gain favor. And third, rideshare pickup and drop-off areas at the airport and major resorts have become standardized, reinforcing their dominance.

Want some hard statistics? In July 2014, according to the Nevada Taxicab Authority, Las Vegas cab drivers provided upwards of 27 million rides. In 2019, only five years later, four years post-Uber, and one year pre-pandemic, that number had dropped 44% to 15.2 million. 

Another study we saw from a transportation analyst reported that taxi trips in southern Nevada decreased by nearly 14% in 2017 compared to 2016 and over two years (2015–2017), ridership dropped by nearly 28%. As for revenue, from 2015 to 2018, it plummeted by 39%, from $425.1 million to $260.3 million. And taxi pickups at the airpoirt fell from 3.82 million in 2016 to 3.23 million in 2018, while rideshare pickups surged from 1.03 million to 2.78 million; in other words, by 2019, Uber and Lyft were reportedly handling more than 60% of ride-hailing traffic to and from the airport, showing a clear shift in consumer preference. 

All that said, while the taxi industry's business is in decline, some argue that competition from Uber and Lyft has also led to some positive changes, such as increased customer service and lower prices, particularly the fixed zone pricing from the airport. Taxis are still not quite emulous, but Uber and Lyft prices have been steadily rising, which at some point will make taxis more attractive.

On the other hand, taxi and limo companies held a nearly unbreakable monopoly on transportation services in southern Nevada for so many decades that the industry continues to face challenges in adapting to the new landscape. It's no great stretch to predict that the current status quo -- rideshare usurping traditional taxi business -- will continue for the foreseeable future. 

 

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Comments

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  • jstewa22 Jun-17-2025
    Don't forget about long-hauling
    I remember reading somewhere (probably on LVA) that a significant portion (maybe about 20%?) of taxi riders were long-hauled one year.  That's been our experience, in the olden days I had had plenty of arguments with taxi drivers about their route, sometimes going as far as threatening to contact the Taxi Authority.  Glad I'm done with that crap, we've only used Uber for the past 6 or 7 years.

  • Kevin Rough Jun-17-2025
    I've gone back to taxis from the airport
    From the airport, I've gone back to taxis.  The rideshare area at the airport is a bit of a distance and very unorganized.  Now with standardized pricing and the taxi line being very close to baggage carousels, I take a taxi.  However the rest of my time in Vegas I take Lyft because I can get them.  Trying to get a taxi off the strip is an exercise in futility.

  • kafka45 Jun-17-2025
    surge pricing
    Last year on our visit.. I checked Uber prices after landing...  there must have been a lot of planes disembarking at the same time cause the Uber prices were WAY higher than a cab...  So.. I used a  taxi to get to our Hotel.  So.. timing means a LOT. 

  • Walloper Jun-17-2025
    Ubers are taxis in other places
    I was in Helsinki the other month and many of their taxis are registered Ubers - it was a little confusing for a foreigner to begin with but you quickly get used to a taxi turning up when you have ordered an Uber.  I have no idea what the legalities and administration of the combined scheme is but it seemed to work well.  The Finns have obviously put some work into it.
    
    There’s also the issue of security in being able to identify your driver much easier on the apps as opposed to the driver’s card on the dash in a cab.  I have often  been in a cab with a “borrowed” driver ID card - hasn’t happened to me in an Uber (yet).
    
    Leave something in an Uber and you contact the driver direct - not in a cab, and sometimes it is not at all easy to get through to the cab company (even if you know which company to start with) to have them contact the driver for you.
    
    Maybe there would be an advantage for the cabbies to investigate the Helsinki (and other places) systems.
    
    
    .

  • Albert Pearson Jun-17-2025
    Uber & taxis 
    I used an Uber in reno that was also a taxi a couple of months ago and the driver told me that it had just recently started. 

  • Brad Stonecypher Jun-17-2025
    Drivers 
    Back in 2016 when I was a taxi driver, most taxi drivers were also uber/lyft driver as well on their days off. Some would even work a 10 hour taxi shift, then go rideshare drive for another 6/8 hours. 

  • Randall Ward Jun-17-2025
    rideshare 
    taxis to and from the airport for me, can't beat the convenience.  Anywhere else it's Uber, except for short trips just for tired feet.
    I like the cheaper prices Uber/Lyft offers but kinda feel like I'm exploiting the drivers.

  • Scott Jun-17-2025
    I use both
    When I fly into Vegas, I lean towards taking a Taxi to my hotel (usually Horseshoe/Paris). It's a flat rate of $25 before tip. That price is sometimes higher than Uber/Lyft, but it's MUCH more convenient as I'm able to avoid the absolute circus of the Uber/Lyft airport pickup area. On my trip from the hotel back to the airport it's almost always Uber/Lyft.

  • Llew Jun-17-2025
    Limos
    One of my friends drove a limo in LV for several years. He loved it.  He was very good at it. At 6’5” and pretty bulky, he had no problem handling even the biggest/heaviest  bags. He even had a few clients who would request him, including Jack Binion (with whom he shared mutual respect). My friend could also get you from point A to point B so quickly it was amazing.  Half the time, you wouldn’t even know where you were until you emerged at your Strip destination. 
    With the rise of Uber/Lyft, his company’s business dropped. At first, they laid off almost all of their full-time drivers; put them “on call.”  After several months with fewer and fewer calls, my friend decided to retire. 
    
    And, Randell, if you don’t want to “exploit the drivers,” just leave them a good tip on top of the fare.  😉

  • Steven Braden Jul-03-2025
    I was Scammed by Vega$ taxi driver
    Yeah Jstewa22, I have a long haul nitemare story to share. On a trip in 2021 during SEMA week I decided to take an old fashioned taxi from the airport to avoid "surge pricing" on my Uber/Lyft phone apps.  I got a weird look from the driver when I didn't put my backpack in the trunk when he opened it (maybe he planned to hold it hostage?) Acted like he got cut off leaving the airport so looped around again back past the taxi line. Now the fare was already at ten bucks & I was exactly back at Point A. (Maybe I should have just opened the door but I gave him the benefit of the doubt.) I had told taxi driver dude the name & address of my destination (a motor-cycle rental place actually less than 2 miles from McCarron.)  He said in a Russian accent he "knew every address in Vegas by heart" & didn't need to GPS anything...I then took out my own phone & gave him directions on the fly since he claimed his GPS "was broken."  Weird Vibe...If I was a young chick he prob would have abducted me!