Uber, which is owned by Chinese e-commerce giant Alibaba, has rolled out a new ride-sharing service in the US, offering $15 million in tax incentives to ride-sharers.
The new service, called UberX, is similar to the one that Uber used to sell its own uberX service, offering drivers a 30% discount on top of UberX’s regular fares.
Drivers will have to use the service in exchange for a $200 upfront fee.
Uber will then offer to give drivers the full $20,000 in UberX rewards.
Taxes on rideshare drivers in New York State will start at $5 per ride.
The same tax incentives apply to UberX drivers in Washington State.
UberX will launch in Seattle and Portland, Oregon, in the next few weeks, and then expand to San Francisco, Los Angeles, Seattle, San Diego, Denver, and Denver-Boulder, Arizona.
The new tax incentives could help the ride-hare business reach $2 billion in annual revenue by 2021, according to a Bloomberg analysis.
Uber and Lyft, which has about a 10% market share, said last week that it planned to add an additional 5,000 drivers for its rideshare service in 2019.