Bad weather is keeping people inside, and that's bad news for the likes of Uber and other such ride-sharing services. To counter this slump, Uber is cutting prices in the U.S. and Canada.
January is typically a slow month for ride-sharing services, as more people tend to stay inside and tend to their daily affairs without going out more than absolutely necessary. Those holiday parties are gone, and most people are back to work (or school), returning to their busy routines that usually involve less outings.
Uber is well aware of this trend and reckons that January brings a slowdown to its business. Demand is sluggish these days, but lower prices for rides might convince more people to shake their seasonal laziness and go out. At least that's what Uber is hoping for, as the company just announced notable price cuts in more than 100 cities in the U.S. and Canada.
"Five and a half years in, we've learned that the single most effective way to boost demand during the winter slump is to cut prices for riders," Uber notes in a new press release.
Just like it did in 2014 and 2015, Uber is cutting prices in a slew of cities in the U.S. and Canada starting on Jan. 9. With this new promotion, Uber aims to convince more people to "head out of the house, ditch their keys, and avoid parking."
The price cuts will vary by region, with some areas getting bigger discounts on rides than others. Los Angeles and San Francisco, for instance, will see 10 percent price cuts, while other places such as Houston will see a more notable 20 percent cut.
Lower prices for rides would normally imply lower earnings for drivers, but that's not the case with Uber's new strategy. The ride-sharing company said lower fares will not have a negative impact on drivers' earnings.
"We are guaranteeing earnings for drivers to ensure that no one is disadvantaged. That's 24/7 incentives to put drivers at ease," Uber further explains.
These new price cuts for rides may also help appease disgruntled customers who entered the New Year cursing Uber. Numerous riders had a big and unpleasant surprise on New Year's Eve, as Uber spiked the prices up to several times their normal rate. After that whole controversy, lower prices are more than welcome.
The new prices for rides will be in effect indefinitely, but don't expect them to last too long. Uber may not have set a specific date for when the promotion will expire, but it will nonetheless return to its normal tariffs once the seasonal slump starts showing signs of wearing off. That said, these lower prices will likely not last for more than a few weeks, so enjoy them while you can!
