Uber is rapidly expanding into new cities–most recently to Moscow–but it also has to meet increasing demand in the ones it already serves. Take San Francisco, for example: The city where Uber first launched came to a grinding halt traffic-wise last week in the midst of the Salesforce’s DreamForce conference, during which 120,000 registered attendees flooded the city.
In the last two months alone, revenues for the e-hailing app, which provides a marketplace for drivers of black cars and cabs as well as passengers, have increased more than 20% each month, and many cities are generating more than $100 million each year. To meet this demand, Uber has implemented surge pricing during peak hours, but that’s only a band-aid solution. The company says the best way to address the issue is to get more cars on the road. That has prompted Uber to ink deals with car manufacturers, including GM and Toyota, to give qualified drivers better financing rates than what they would otherwise get in order to “significantly reduce drivers’ monthly car payments.”
Uber says a “fully utilized car” on its platform can generate more than $100,000 a year. At launch, the program will be available in six cities: San Francisco, New York City, Boston, Philadelphia, Chicago, and Dallas.AT