Uber has announced they will be cutting prices in more than 100 U.S. and Canadian cities starting this past Saturday, due to the anticipated decrease in business this winter season.
The lower prices account for the “winter slump,” as Uber explained on their website.
"Seasonality affects every business, and Uber is no exception because when people hunker down at home, demand for rides drops," they wrote.
Uber also revealed it’s the third winter season in a row they’ve decided to cut prices for winter, but it ended up working in their favor in some cities and not working for others.
“In two cities, including Seattle, we ended up reversing the price cuts entirely when it became obvious that prices were already low enough,” the company added. “Earnings have remained stable since.”
"While pricing is a science, every city is different: different economic circumstances; different regulations; different competition" Uber continued. "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.
Uber now operates in 68 countries and 370 cities, according to TechCrunch. Recently, Uber reached its one billionth ride.