Uber promises drivers won't be affected by price cuts in 48 cities
Uber is implementing price cuts for customers in 48 US cities starting today. Uber drivers have protested previous price cuts, but the rideshare company says it will guarantee that this time, drivers' earnings won't suffer.
Starting Friday, Uber is implementing price cuts for customers in 48 of its newer US cities, the company announced in a blog post Thursday.
"As things slow in the winter season, we will be reducing prices in 48 of our newer Uber cities to achieve better outcomes for both riders and drivers, as we have seen in cities around the country, the post reads. "In the past, Uber has implemented price cuts without a guarantee for drivers. However, this time around, we’re trying a new approach. We’re so confident in the earnings gains drivers will see that we’re making earnings guarantees in every city where we’re cutting prices. We feel that it is important for drivers to have this kind of certainty and comfort going into a price cut."
Uber is also making earnings guarantees for drivers in these cities, which include Austin, San Diego, and Miami. "We feel that it is important for drivers to have this kind of certainty and comfort going into a price cut," the company said.
The blog post cites its Chicago market. There, Uber customers are paying less per ride, but drivers' earnings have increased.
"The upside for the rider is obvious, but also important is that with the increased demand, drivers’ income goes up as well," the blog post says. "More demand turns into significantly more efficiency for the driver, more trips for every hour, and more earnings for every hour on the road."
You can read the full announcement over on Uber's blog.
This post first appeared in Business Insider.