Who would've though that an app that flags down roving towncars would blow up as dramatically as it has? Apparently every venture capitalist worth their salt. Uber revealed earlier this afternoon that it just raised a staggering $1.2 billion in funding from a slew of investors, but the more interesting news didn't appear on the company's blog - instead, the Wall Street Journal reported that the Uber would cut its prices by at least 20 percent in certain markets. That means cheaper rides for you, more competition for traditional cabs, and a path to new heights for an already insanely buzzy startup.
Uber confirmed the price cuts to us in an email but wouldn't divulge which of the 128 cities it services would get the discounts (c'mon New York!). The move has been in the works for a while now: the Journal pointed out last January that the company experimented with price cuts while demand slowed over the winter, and Valleywag reported that the cuts could remain permanent in some cities. Guess they liked what they saw. While this may be good news for you and me, current Uber drivers (who, let's remember, can do very well for themselves) may wind up taking a financial hit unless they drive more hours. And then there are the drivers who work for dedicated cab companies -- some folks are worried that they'll go extinct completely in some locales.