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Uber is slashing prices in New York City

Uber is dropping fares in New York City on its UberX and UberXL services by around 15 percent. The price drop was first reported by the New York Post and subsequently confirmed by Uber.

The base fare on UberX will go from $3 to $2.55, with the per mile rate going from $2.15 to $1.75. The per minute rate will go from $0.40 to $0.35. UberXL will see drops of similar levels. The new prices go into effect on Friday.

Uber believes the rate cuts will drive an increase in ridership, citing a doubling in the number of UberX trips in the outer boroughs the last time rates were dropped. The company says drivers will see an advantage too, with more riders driving higher hourly earnings.

The company says if driver revenue doesn't rise as a result of the price reductions, the fares will go back up. Uber says the rate cuts are the result of seasonality in New York City, as the city empties out in the summer as residents head off on vacation, and, in this case, as things quiet down following the holidays.

Uber and Lyft have been cutting prices across the country this winter in something of a price war, though Uber is the first to cut rates in New York.