Uber drops prices in 5 Canadian cities during 'winter slump'

Ride-hailing service Ubersays it hascut prices in a handful ofCanadian cities to offset the "winter slump" as people hunker down inside and the demand for rides drops.

The San Francisco-based company saidon its websitethat it would cut prices in more than 100 cities in the U.S. and Canadastarting this past weekend the third year it has lowered winter prices.

UberspokesmanJean-Christophe De Le Rue said in an email that price cuts have taken place in Ottawa, Hamilton, London andKitchener-Waterloo in Ontario and Quebec City.

Other Canadian cities that use Uber, includingToronto andMontreal, were not mentioned.

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The company will still trackits numbers and mayraise them accordingly. Uber reversed its price cuts in Seattle last winter "when it became obvious that prices were already low enough," its website says.

The company saidit is guaranteeing earnings for drivers in the affected cities.

Uber often changes its prices depending upon demand, and has faced criticism and legal action over its "surge pricing" during busy periods.

For instance, thelegal aid clinic Juripop is threatening to pursue a class-action suit against Uberto reimburse clients who paid higher than normal fares on New Year's Eve in Montreal.

Catherine Papillonsaid she had never used Uber before and didn't understand the dynamic pricing. Shewas charged $82.20 for a ride that would have normally cost about $10 with a taxi, Juripop said.