Ride Sharing apps such as Uber and Lyft have become tremendously popular over the past few years, especially in major cities across the U.S. What once started as a fad that was initially only popular among college students looking for cheap rides has expanded to become an industry that could soon surpass taxi cabs. Because of the success of these apps, Uber and Lyft each have plans to expand operations in different locations in the United States.

Uber in Buffalo.

In July, Uber will expand their operations in Upstate New York into the cities of Buffalo and Rochester.

Once the bill that would allow ride sharing takes effect, it will be legal for Uber to operate by July 8th. As far as Uber's strategy, their plan and exact timeline is unclear. According to Uber, the demand for the service will be dependent upon the demand.

Buffalo Demographic.

The population in Buffalo isn't as large as the ones in New York City or in D.C., so the exact demand is difficult to predict. In D.C., a distance of just a few miles can take a long time in the heavily trafficked region. In addition, consumers in D.C. normally do not need to take long distance trips and instead remain in the city.

In Buffalo, things could easily be different. Consumers will likely need to travel for further distances and their willingness to pay could certainly be lower.

In Buffalo, people have cars to get around simply because they need them. Transport to and from work and around the city could potentially be easier with Uber, but it won't be the smashing success that it was in D.C. purely because of the demographic differences between the two regions.

Taxes.

Uber's entrance into a new market will not come without a tax.

Riders will be the ones charged a 4% assessment tax for each trip, 75% of which will go directly to the state. New York's initial reluctance to accept Uber as a service was a direct result of a wish to protect taxi drivers, but now that the state can benefit, Uber's expansion plans should continue without a hitch.

Option.

City governments have the option to block ride hailing services, but it's unlikely that they will.

Uber offers cheaper rides than traditional taxi cabs and consumers will flock to the far cheaper option. The convenience and ease of use that Uber offers in comparison to traditional cabs offers another advantage. Government officials have also voiced support for ride sharing in upstate New York, so now it's only a matter of time before consumers in Buffalo will have the option.