Uber is engaged in a monthly Amazon Prime-style subscription service that brings together all the important services: ride hailing, Uber Eats food delivery and bicycle and scooter rental. The company is currently testing various iterations in Chicago and San Francisco, but it may soon be rolled out to other markets.
The all-in-one pass is available for $ 24.99 a month. For that price, customers receive price protection or a fixed discount on every ride with a hail ride, free delivery on Uber Eats and free rides on Uber's Jump bikes and scooters. Uber also tests cheaper passes in a handful of other cities with rides and Eats benefits, such as discount on rides and free delivery on orders of a certain amount.
"From meals to wheels and everything in between, we are always looking for ways to make Uber the option for your daily needs," a spokesperson said in a statement. (The news was first reported by TechCrunch.)
Last year, Uber introduced its Ride Pass subscription service that allowed customers to set fixed rates on all UberX, UberPool and Express Pool journeys they made during that month. Uber bases the rates on historical data and claims that it saves riders up to 15 percent on their total monthly journey. Ride Pass rates are not subject to typical external events such as weather, traffic or peak prices, and there is no limit on the number of journeys that customers can take each month. The company now offers Ride Pass in more than two dozen markets, some of which offer discounts on bicycles and scooters.
Ride Pass can help Uber prevent customers from switching apps regularly, but if it becomes popular, it can also act as a brake on the money-losing company. Uber drivers who accept trips from Ride Pass users still receive the same income based on time and distance, with Uber covering the difference.
Technical companies, especially unprofitable companies such as Uber, are increasingly interested in subscriptions as a way to capture monthly recurring revenue streams. Uber strives to be a one-stop shop for transport and delivery, and a monthly subscription helps to underline that mission. It can also lay the foundation for a possible taxi service without a driver, which the company also wants to launch.
"Frequent consumer behavior is non-classified subscriptions; smokers unwittingly subscribe to Philip Morris, & Reilly Brennan of Trucks venture capital firm wrote in his newsletter this week. "The benefits for mobility subscriptions become clearer to consumers as the number of modes increases and the travel time decreases."