Uber issues another price cut as riders stay home

Uber price cuts

Uber has announced another price drop in New York City, this time slashing prices by 15% for UberX rides.

In a post on Friday the company said it is now cheaper to ride in an Uber than a taxi cab.

Minimum UberX fares are now $7, instead of $8. Uber drivers take home 75% to 80% of the overall fee per ride — depending on how long they have been working with Uber.

In a blog post, Uber said the reason for the price cuts is based on seasonality concerns. In the winter months, Uber passengers request less rides, deciding instead to stay in the warmth of their home or office.

The new 15% price reduction started at 7 a.m. Friday morning.

Uber has also implemented a new hourly guarantee for drivers between $30 to $40, depending on the time of day. That rate guarantee doesn’t include Uber’s cut or taxes.

In July 2014, Uber lowered prices in New York City and found that the time drivers spent with riders doubled to 32 minutes per hour — up from 16 before the price drop.

The world’s largest ride-hailing service cut prices in 100 U.S. and Canadian cities on January 8.