Uber lower prices! Howwould spend its billion-dollar investment??? More rides in more places :)
Taxi drivers hate Uber.
Yesterday, Uber announced it was lowering UberX fares by 20 percent in New York City, claiming the cuts would make its cheapest service cheaper than a regular yellow taxi. That follows a 25 percent decrease in the San Francisco Bay Area announced last week, and a similar drop in Los Angeles.
As marketing expert I can explain you simple how Uber marketing tactics works:
1. Uber start to work in really many countries.
2. Uber grab attention of many people - this is to say them something like "common, start to work for us, we have many clients, come and earn these money!".
3. So, Uber now have many drivers.
4. Uber needs (again) more drivers (more money).
5. But drivers want more clients.
6. Uber lower prices.
There is one simple rule: To win more customers, it is easier to lower prices instead of increase the quality.