In an effort to bump up rides during the ‘winter slump,’ both the recent price cuts and the ride-sharing ability can benefit customers’ spending. In some cities, this is the third consecutive year that the company has lowered prices in January.
Uber stated, “While pricing is a science, every city is different: different economic circumstances; different regulations; different competition,” adding, “Last year, for example, earnings fell in some cities and we changed back. In Charlotte, for example, we pulled a 40% price cut back to 29%, and earnings for drivers grew by nearly 20% 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.”
The company also made headlines this weekend, when San Francisco’s largest cab company filed for bankruptcy, blaming Uber in part for taking away a large amount of its customers and drivers.
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