Uber is vaporizing the taxi industry — so a new startup is raising $250 million to help cabs compete

Uber is crushing the taxi industry that has dominated New York City — and other cities — for so many years.

Data from the Taxi and Limousine Commission analyzed by the New York Daily News shows total trips in the first half of 2015 were down 10 percent to 77 million, compared to same period last year. Revenues from yellow cab fares have declined as well. And in July, there were 100,000 Uber trips in New York City per day, a 4x increase from last summer.

It's hard for taxis to compete with Uber, the ubiquitous car-hailing service said to be raising anadditional $1 billion round of funding at a $60 to $70 billion valuation.

But a new startup called Karhoois hoping to give taxi drivers in several cities a leg up.

Karhoo, a 10-month-old startup that won't launch until January 2015, has raised a $250 million round of funding, with plans to raise more than $1 billion in capital. Karhoo works with licensed taxi companies to let you hitch a ride from any number of taxi services, the FT reports.

More