Uber Technologies has dropped rates in over 100 United States and Canadian cities, admitting that the decision was prompted by an annual winter slump that comes about after the holidays.

By lowering prices, Uber hopes to stimulate demand and offset the winter losses. The company cites its five-plus years of experience as reason enough to employ this strategy, which it has used for select cities over the past couple of years, Digital Trends reported. In those areas, driver earnings have increased. 

Like Us on Facebook

For the third year in a row, Uber has announced that it is decreasing rates by as much as 20 percent in some cities, in the hope that the lowered prices will lure even those of us who prefer to hibernate all winter out of the house.

A large part of Uber’s success can be attributed to its emphasis on balancing supply and demand. While some competing apps struggle to have enough drivers or riders, Uber aims to optimize its pricing so that there is always a driver or passenger available for pickup, according to Tech Crunch. 

Each city is different, with Uber looking into economic circumstances, distinct regulations, and competition. The company is constantly running tests to give riders better value while also providing steady earnings for drivers. Uber said it will cut prices in Los Angeles and San Francisco by 10 percent, Houston by 20 percent, and Richmond, Virginia, by 15 percent. Prices in some cities, including New York and Chicago, will remain unchanged for now.

“While pricing is a science, every city is different: different economic circumstances; different regulations; different competition. We’ve learned over the years that we do best when we test new things. With each new test—small or large—we learn more about the choices riders make, and how those choices impact earnings for drivers,” company stated in a blog post. 

In addition, Uber will provide incentives and hourly guarantees in some cities to help drivers maintain or increase the amount they are making during the slower season. Since 2013, drivers' average net hourly earnings in Minneapolis have increased 90 percent. Cities with more established market such as Los Angeles, drivers' net hourly earnings has increased six percent.

Uber is the world’s most valuable startup with a raising capital at a $65 billion valuation. Recently, it has completed its one billionth ride after six years since inception. The company operates in over 68 countries and 370 cities.