Uber reduces fares in about 100 cities

Regular Uber customers now have another reason to get out of the apartment and catch the latest movie or do some grocery shopping. Uber Technologies, the ride-hailing service began dropping prices in about 100 American and Canadian cities on Saturday. The company said it is lowering its fares on January in order to increase demand on a quiet month. 

Riders have spent their money during the holidays. The social events of the season are over. It’s cold in many parts of the country, so people are less likely to leave their house, explained Andrew MacDonald, Uber's regional general manager of the Midwest, South, Canada, and Latin America.

Popular cities like Los Angeles and San Francisco will see prices cut by 10 percent, Houston by 20 percent, and Richmond, Virginia, by 15 percent. Though in some cities, including Boston, Chicago and New York, fares will remain unchanged for now.

For obvious reasons, a lot of Uber drivers are not happy with the fare reduction announcement. Some even spent more time driving for Lyft, Uber’s main competitor in the U.S. This is because drivers aren't paid by the hour. Instead, they are paid according to fares. When prices drop for riders, drivers begin making much less. But Uber promised that this is not a long-term change, as the company can raise their prices if business catches up again. 

This is the third year running that Uber has dropped fares during the first month of the year. Previous company data has shown that lower rates are an effective inducement to riding in cities like Boston, Washington D.C. and Los Angeles.