Uber announced Thursday that it will cut prices in 48 of its U.S. markets, the same day the China ministry banned taxi hailing apps like Uber from using cars and drivers without taxi licenses.
The last time the company started offering big discounts was at the beginning of last summer. Discounts will apply to newer cities that didn't get price cuts half a year ago like Miami, Baltimore, Dallas and Tucson.
The company charges a fee to help users get a nearby driver, some of whom are registered taxi drivers.
Uber seems confident that the cuts will result in more people using the app since it is guaranteeing driver earnings. More rides means more money for drivers so the cuts could be a good thing or not work at all.
Uber is telling drivers in discounted markets what the fare is, this way drivers can track if the company is living up to its end of the bargain, according to a Uber blog post.
Meanwhile in China, a nationwide ban was called for after authorities in the city of Chongquing started investigating Uber over concerns that drivers weren't properly licensed.
"Every limousine app company should abide by transport market rules, take their responsibilities seriously, and ban private cars from operating on their platform," the Ministry of Transport said in a statement late on Thursday, according to Reuters.
"This will allow passengers who use these services to travel at ease," the ministry added.
Uber has caused trouble in other areas over licensing issues as well. Cities like Amsterdam, Berlin, New Delhi and Portland, Oregon have banned or looked to ban Uber services recently.
Taxi app users are set to triple in China to 45 million, compared to 2013, according to iResearch. Apps like Uber, Kuaidi and Didi represent about 90 percent of China's taxi app market.
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