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Uber launched a subscription service, Uber One, in 2021 that offered various perks, including free delivery, but the main perk was a 5% discount on eligible rides. Now the company has done away with this, allowing 6% cashback (in the form of Uber Cash) to be used for rides, his Uber Eats and more. tech crunch reported. This is true even though last year Uber One doubled its subscriber count to 12 million, thanks to discounts that it advertised prominently on its app.
“Uber One is the best way to save across Uber and Uber Eats, so we’re making it even easier to take advantage of benefits across all Uber products,” said Becky Katz, head of consumer communications at Uber. Mr Davis said. tech crunch. In a letter to subscribers, the company suggested consumers use UberCash to order luxury cars and Uber Eats.
The move is seen as a way to boost Uber’s rides and profit margins. The company recently announced that Uber One subscribers make up 27% of all bookings, and more than 50% in some markets. Moreover, the service is “highly profitable,” Khosrowshahi said at an earnings call earlier this year. “And, essentially, we’ve found this to be a very effective way to increase frequency and elicit higher engagement with our customer base.”
Uber One has emerged as a virtual replacement for Uber Rewards, the company’s airline-like rewards program that was discontinued last summer. However, switching from discounts to Uber Cash can be a risky move. Uber boasts on its Uber One landing page that members “save an average of $27 a month with Uber One.” But now, passengers have to do some math to see if the new system is worth the $10/month or $100/year subscription price.