Ridesharing service Uber has cut its fare prices in 48 cities across the US as the company touts its rising earnings. People in cities including Miami, Dallas, and San Diego will be able to take advantage of cheaper Uber fares, but the company isn't reducing prices at the expense of driver wages — Uber says it's guaranteeing private taxi operators' earnings during the cuts.
Uber is focusing on smaller cities with these cuts
Uber made similar cuts to its pricing last January, trimming prices by between 15 and 34 percent in 16 of the 24 cities where it was operating its UberX carsharing service, including Los Angeles and San Francisco. When Uber has previously implemented these cuts, it has done so without a driver earnings guarantee. But the company says that it's now "so confident in the earnings gains drivers will see," citing figures from New York and Chicago that show that although Uber customers are now paying less in average fare, average driver hourly earnings have increased.
Neither New York or Chicago are included in this new round of price cuts — instead, Uber is focusing on smaller cities it has more recently expanded to. Uber may take a loss on many of its journeys in these smaller markets, but by implementing these cuts, it's using its reserves of cash to expand its user base and maintain control of the ridesharing market.