Uber's Price Drop
Uber is cutting its fares for passengers; but not everyone is along for the ride.
On January 28th Uber cut fares in New York by 15%. Since then the company says demand for rides has increased over 50%. And the rise in numbers is happening all over the city with more people taking advantage of the lower prices and either trying the ride sharing program out for the first time or using it more often.
And it's not just New York that has more people booking a ride. While not releasing specific numbers Uber says since the fare cut business is up in cities all over the country. But despite the boost drivers say it’s hurting their bottom line.
They say when Uber dropped the price for customers it did not change the percentage it takes from drivers. So since customers are paying less and the company is taking the same cut the drivers are feeling the pinch. Some drivers are threatening to start working for a competitor; but how long until that competitor also drops prices in an effort to keep up?