Uber Technologies is reducing prices in more than 100 cities in U.S. and Canada to boost demand in the winter season.
The company believes that cutting prices will give riders “one more reason to head out of the house, ditch their keys, and avoid parking.”
In a blog, Uber said that it has learned during last five years that the price cut is the most effective way to increase demand during the winter slump.
Bloomberg reported that Uber is cutting prices in Los Angeles and San Francisco by 10%, Houston by 20%, and Richmond, Virginia, by 15%.
However, there is no changes in prices in some cities, including New York and Chicago.
Uber said that it guarantees earnings for drivers to ensure that no one is disadvantaged. That’s 24/7 incentives to put drivers at ease.
“While pricing is a science, every city is different: different economic circumstances; different regulations; different competition. We’ve learned over the years that we do best when we test new things. With each new test—small or large—we learn more about the choices riders make, and how those choices impact earnings for drivers,” according to Uber’s blog post.