Uber Heats Up Winter With Annual Price Drop
Image via Facebook
According to Uber, the winter slashing of prices is a win-win for consumers and drivers alike.
For the uninitiated, Uber is in the midst of what seems to be an annual winter sale of sorts. The company announced on its blog that it would once again turn the figurative dial down as those around the country are turning the thermostat up.
The blog states: “Five and a half years in, we’ve learned that the single most effective way to boost demand during the winter slump is to cut prices for riders. Starting tomorrow—just like last year and the year before—we’re cutting prices in more than 100 US and Canadian cities, giving riders one more reason to head out of the house, ditch their keys, and avoid parking.”
What that exactly means will differ from market to market. What’s clear is that an already affordable ride around town will be a bit cheaper during the time of year when it is far more preferable to throw a log on the fire or to snuggle on the coach for some binge watching.
According to its email to consumers in this market, prices in the LA area for UberX service, for example, will decrease by about 10 percent.
It seems you can expect to save a couple bucks as a ride from Santa Monica to West Hollywood, normally about $19.57, will run about $17.37.
A drive from Hollywood all the way to LAX will cost $19.92, down from $22.55. Now it’s important to remember this doesn’t include surge pricing, which will still affect riders during those periods when service is congested.
That may be just one anecdotal example, but it illustrates that you can save some cash if you dare brave the weather.
Not that this will affect drivers adversely. As the blog illustrates, quite the opposite is true in various markets that have experienced this winter price drop annually.
For example, here are driver earnings over a similar period thanks to a graphic posted at Uber Newsroom.
Image via Uber
It should be noted that an increase in earnings is thanks in large part to a hike in demand as each ride will garner less of a fare.
Now this doesn’t mean the pricing is permanent by any stretch. As Uber states, the sale is extremely fluid and will fluctuate as it has in the past: “Of course, it doesn’t always work as we had hoped. Last year, for example, earnings fell in some cities and we changed back. In Charlotte, for example, we pulled a 40 percent price cut back to 29 percent, and earnings for drivers grew by nearly 20 percent in 2015.”
For the curious, Time has a list of the cities that will benefit from a brief but welcomed easing of prices.
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