Uber is lowering prices in over 100 U.S. and Canadian cities, effective tomorrow. January is a slower month for the car service and the company says it is reducing fares in order to increase demand.
“Seasonality affects every business, and Uber is no exception,” said the company blog post.
Uber claims that the increased demand will offset the lower prices and that drivers will make more money. But if this doesn’t work out, Uber says its prices will go back up again.
This is the third year that Uber has cut January fares for some cities. The company showcased Boston, DC and Los Angeles as examples of cities where past price cuts resulted in increased demand.
A large part of Uber’s success can be attributed to its emphasis on balancing supply and demand. While some competing apps struggle to have enough drivers or riders, Uber aims to optimize its pricing so that there is always a driver or passenger available for pickup.
Uber is the world’s most valuable startup — the company is said to be raising capital at a $65 billion valuation. The service launched less than six years ago and recently completed its one billionth ride.
The company operates in over 68 countries and 370 cities.Featured Image: eskay/Shutterstock