Merchant Innovation

Uber Fares Are Falling

Uber enthusiasts in 100 or so U.S. and Canadian cities have some good news: The ridesharing service is lowering its fares in an attempt to up demand.

“Seasonality affects every business, and Uber is no exception,” said a company blog post.

The lowered fares, Uber reasons, will boost usage, which will offset lower prices and allow its drivers to make more money. However, if lower rates fail to stimulate demand, prices will be going back up.

The January fare cut has become something of an annual event; this is the third year running that rates have fallen during the first month of the year. Previous year's data has shown that lower rates are an effective inducement to riding in Boston, D.C. and L.A.

Uber's pricing customization, wherein supply and demand are kept actively balanced, is one of Uber's main edges over its many, many competitors, as it allows there to always be a driver for a passenger whenever, wherever.