If you’ve never taken an Uber in New York before, Friday might be the day you start—at least that’s what the cab company is hoping.
As part of its initiative to cut fares in 100 cities across the U.S. and Canada, Uber has lowered prices for rides in New York City by 15%. A ride from Chelsea to the East Village in Manhattan now costs $10.59 instead of $12.46, and a ride from Williamsburg to Bushwick in Brooklyn is now $8.41 instead of $9.90, according to Uber’s website.
The fare drop means that the company and individual drivers will make less per ride. However, Uber says the lower margin is worth it in exchange for an increase in ridership. “Drivers will feel the benefits of lower prices too—because when demand increases there’s less idle time between for trips, and that means more time with a rider in the car,” reads the company’s blog.
The company had previously cut prices in July 2014, at which time the average idle time for drivers fell by 42% and average hourly earnings increased by 33%, says an Uber spokesperson. “That’s what we expect to happen here, and if that doesn’t happen, we’ll reverse the price reduction.”
