If you’re an avid Uber rider, then you’re aware of their pricing model in which there is a base charge, as well as a surcharge for each minute and mile. Uber announced, that they will be LOWERING pricing in 100 cities this January in hopes to create higher demand.
From Uber’s announcement:
Higher demand means more time moving people, less time spent waiting around and more money for drivers. And if drivers aren’t busier, prices will go back up again. In addition, we are guaranteeing earnings for drivers to ensure that no one is disadvantaged. That’s 24/7 incentives to put drivers at ease.
For some cities this is the third year in a row we’ve cut prices to fight the January blues. Driver earnings in those cities continue to rise year after year.
Of course, it doesn’t always work as we had hoped. Last year, for example, earnings fell in some cities and we changed back. In Charlotte, for example, we pulled a 40 percent price cut back to 29 percent, and earnings for drivers grew by nearly 20 percent in 2015. And in two cities, including Seattle, we ended up reversing the price cuts entirely when it became obvious that prices were already low enough. Earnings have remained stable since.
I personally am a big Uber fan, so this latest announcement about Uber slashing prices in 100 cities is one that I can get behind the wheel on (no pun intended).
If you haven’t tried Uber yet, you can get a free ride (up to $20 here.)
The announcement doesn’t mention which cities will be getting the price cuts, so please comment below if you notice cheaper Uber rides in your city!