Uber has announced price reductions in more than 100 cities across the United States and Canada, with most of the cuts taking effect in January.
These reductions are seasonal and intended to help the company through a typically slower period. Drivers will receive lower pay per ride, but Uber expects higher rider demand to offset reduced per-ride earnings by increasing overall trip volume.
In a statement, Uber explained that after more than five years of observing seasonal patterns, lowering fares has proven to be the most effective way to boost winter demand. “Starting tomorrow — just like last year and the year before — we’re cutting prices in more than 100 U.S. and Canadian cities, giving riders one more reason to head out of the house, ditch their keys, and avoid parking,” the company said. Uber also noted that increased demand results in more time spent transporting riders, less idle time for drivers, and ultimately higher overall earnings. The company added that fares will rise again if demand does not increase and that driver earnings are being protected through guaranteed-earnings programs and round-the-clock incentives designed to reassure drivers.
A complete list of affected cities was made available by Uber.