Uber to Decrease Prices for Riders, Guarantee Earnings for Drivers
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Photo by Pablo Blazquez Dominguez/Getty Images(NEW YORK) — Uber announced this week that they plan to cut prices for riders while guaranteeing earnings for their drivers.
In a blog post, the company noted that “in the last year, our largest cities have seen price cuts,” but that “many of our newer cities have not yet seen the power of price cuts.” Cheaper rates, the company explains, increase demand from users, and in turn increases income for drivers.
“As things slow in the winter season, we will be reducing prices in 48 of our newer Uber cities to achieve better outcomes for both riders and drivers, as we have seen in cities around the country.”
The company shared data from Chicago, “the cheapest of all of Uber’s U.S. cities” in the blog post. According to Uber, the average fare in December 2014 was $11, down from $14.25 in December 2013. In that same timespan, however, the number of trips per hour increased from 1.34 to 1.94, and the average hourly bookings per driver rose from $19.10 to $21.34.
A list of the cities set to see price cuts is available on the Uber blog.
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