Uber cuts prices in 48 cities, promises drivers they won’t lose out

uber cuts prices 48 cities promises drivers wont lose
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Uber said Thursday it’s cutting the cost of rides in 48 of its newer cities across the U.S. in an effort to “beat the winter slump.”

While the move may raise eyebrows among drivers of the ride-hailing service, fearful that the fare cut will also mean a drop in wages, they needn’t worry. Uber is promising that no driver will lose out in the locations where it’s cutting fares.

The San Francisco-based company explained in a post on its blog: “In the past, Uber has implemented price cuts without a guarantee for drivers. However, this time around, we’re trying a new approach. We’re so confident in the earnings gains drivers will see that we’re making earnings guarantees in every city where we’re cutting prices. We feel that it is important for drivers to have this kind of certainty and comfort going into a price cut.”

Uber has previously implemented price cuts in some of its more established locations during quieter times of the year, and, offering Chicago as an example (below), demonstrated how lower fares can benefit not only paying passengers, but drivers too.

uber lower prices jan 2015

The company is hoping that by offering discounted fares in its newer markets it can more easily attract first-time customers who can then help spread the word about the service, enabling it to establish itself in those locations more quickly. The cities where lower prices are being implemented include Atlanta, Dallas, Detroit, Miami, Salt Lake City, and San Diego.

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