Uber is currently testing a monthly subscription service which combines rides, Eats, bikes, and scooters. Uber tests a few different iterations in San Francisco and Chicago, but each version includes a fixed discount on every ride, free Uber Eats, delivery and free JUMP rides. The pass costs $24.99 per month. In other cities, Uber tests lower-priced passes that offer discounted rides and free delivery on Eats orders above a certain amount.
This news came after TechCrunch first reported leaked screenshots from Uber’s Android app showing an Uber Eats pass in March, where they imagined a scenario of Uber combined Eats with its Ride Pass product. Uber first launched its ride pass last October as a way for people to constantly pay lower prices on some individual prices as a monthly fee. However, Lyft offers a similar monthly subscription product called All-Access.
Ride pass can help uber prevent frequent app-switching by its customers, but if it becomes popular, it can also prove to be a drag on the money-losing company. Uber drivers accepting ride pass users which will still get the same earnings based on time and distance, with Uber covering the difference. The customer behavior in the per rides are unclassified, while the advantages of mobility subscription become more obvious to the consumer as the number of modes goes up and trip length goes down
This is the first time Uber is combining all of its consumer offerings into one monthly subscription. A challenge in the micro-mobility space is product differentiation and brand loyalty, so this is a more convenient way for Uber to get customers to fully commit to its multimodal platform. Just imagine you have purchased Uber’s monthly combo pass and are looking for a bike or scooter. You walk by a Lyft bike, but then open up your Uber app to see a JUMP bike isn’t all that far away. My bet is that you’d walk a bit more for that bike since you’ve already paid for it.
On Friday, Lyft deployed its e-bike space for the first time in San Francisco which can be both docked and dockless. Apparently, the company is trying to pilot this product in SF, plus uber is planning for a combo plan also creeps into Postmates’ territory, that will offer a monthly subscription product for unlimited free deliveries.
Tech companies especially the unprofitable ones like the uber are now growing its interests in subscription service as a way to lock in monthly recurring revenue streams. Uber aspires to be a one-stop-shop for transportation and delivery, and a monthly subscription helps underscore that mission. It can also lay the groundwork for an eventual driverless taxi service, which the company also aspires to launch.