Lyft lower their prices due to slow demand, copying Uber

A few weeks after Uber announced that it was cutting its prices in 100 cities across North America as demand slows in the winter season, Lyft, its rival company, has revealed that it is lowering prices in the US as well. In a blog statement Lyft wrote, "we are lowering prices in 33 markets to get people back on the road at a lower cost and help ensure our drivers are in high demand.” Lyft has not announced how long the price cuts will last, however, it is likely that the company will review their pricing strategy as demand picks up in the spring.

Winter months are traditionally slower for many businesses and this also applies to ride-sharing businesses. No wonder Uber recently announced that it was cutting prices to spur demand in these months. Merely a couple of weeks after that announcement its major competitor Lyft has also confirmed that it’s cutting prices as well during the winter months.

Saying that it wants to remain the most affordable option for passengers, Lyft wrote in a blog post that in January many people make resolutions to save money. “So starting today, we are lowering prices in 33 markets to get people back on the road at a lower cost and help ensure our drivers are in high demand.”

The price cuts will be applied in 33 cities across the United States. Unlike rival Uber, Lyft only operates in the U.S. for now. The cities that will see price cuts include DC, Denver, Los Angeles, San Diego, San Francisco, San Jose, Detroit and others.

It’s interesting to note that two major cities are not on either Uber or Lyft’s list for price cuts: Chicago and New York City. There’s the two cities where people heavily rely upon cabs and ride-sharing services so they’re unlikely to witness slow demand as opposed to some of the other cities across the country.

Lyft doesn’t say how long the price cut will remain in effect in these cities, but at least riders know that they’re set for the winter months, it would be best to revisit its pricing once spring comes around.

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