Uber today dropped its rates by 25 percent for UberX riders in Seattle.
Last year, the San Francisco-based startup offered free UberX rides for two days at the beginning of summer. This time around, the company is slashing its rates by 25 percent as part of another summer promotion. Uber Seattle GM Brooke Steger said that the discount will not affect the profit of drivers.
Uber is fresh off a whopping $1.2 billion round that it raised last week at a $17 billion valuation — the most-ever for a private tech company. The company has been in a price war with fellow transportation startup Lyft, which cut its prices by up to 25 percent in April. Lyft has also stopped taking its 20 percent commission from drivers for the past two months.
But whether or not Uber and Lyft can operate in Seattle with proper regulation remains to be seen. Monday was the deadline for an agreement to be reached between taxi industry stakeholders, those from Lyft and Uber, in addition to City officials.
Sources tell us that an agreement is “close,” but there appear to be a few kinks to be worked out in the agreement. Mayor Ed Murray had previously said that if no deal was reached by Monday, he’d issue a cease-and-desist to Uber, Lyft and Sidecar. It’s Tuesday, and that has not happened yet.