Ridesourcing company Uber announced it would start cutting prices Saturday in 100 cities in the U.S. and Canada to heighten demand over slow winter months.
Why prices are dropping
“Yes, seasonality affects every business, and Uber is no exception,” the business said in a news release. “When people hunker down at home, demand for rides drops. Fewer trips are tough on drivers, many of whom want to save money and pay off their holiday credit card bills now that January is here.”
The company did not name the cities which would see prices drop. It is the third year Uber has cut winter fees to stimulate demand.
The business said prices will rise again if the move fails to attract more customers. In previous years, the company has rolled back price cuts in Charlotte, North Carolina, and Seattle after determining their ridesource prices were low enough.
The cuts won’t affect drivers, according to Uber.
“We are guaranteeing earnings for drivers to ensure that no one is disadvantaged,” the company said.