Ride-sharing service Uber is looking to deal with lower demand it's getting in the winter by cutting prices in 48 of America's cities.
The price cut, which started Friday, is a common move used by the San Francisco-based company to get more business. Uber reduced prices for UberX in its hometown to 10 percent lower than that of regular taxis in 2013. Now, it is cutting prices for the same service by 15 percent in San Francisco, as well as in Chicago, Phoenix, Los Angeles, Seattle and other cities, according to CNET.
Uber wrote in a blog post that riders aren't the only ones that benefit from the price cuts, as drivers also do well since saving money on trips leads to more demand from customers, which leads to more rides, resulting in more money for drivers.
Stats from a blog post from October about the move leading to an increase in wages for drivers in New York City and Chicago were also used to support price cuts.
As part of the announcement, the company guaranteed that drivers in cities with reduced rates would receive minimum fares, CNET reported. All these drivers have to do is be online with Uber for 50 minutes of every hour worked, accept at least 90 percent of all ride requests and average at least one trip per hour.
The current rate reduction has yet to be announced.
"We expect that these seasonal price cuts will help bring newer Uber markets in line with our larger ones with lower costs for riders, higher earnings for drivers, shorter wait times for both, and a better experience for all," Uber wrote.
