Monday news dropped that Uber would be testing a new subscription-based model in two pilot cities. San Fransisco and San Antonio will be the first two markets to offer the latest service they call Uber Pass.
According to reports from Yahoo, this new subscription-based model will come in at the price point of $24.99/month. What will they be offering? Early adopters of this subscription will see a discount across much of Uber’s current offerings including Uber Eats, Jump Bikes, Scooters, and standard Uber rides. They are even offering price protection for every ride as a part of the subscription.
What are they hoping to accomplish with Uber Pass?
According to an Uber spokesperson as reported by TechCrunch;
“From meals to wheels and everything in between, we’re always looking for ways to make Uber the go-to option for your everyday needs.”
This isn’t their first try…
This isn’t the first subscription model that Uber has tossed around. One previous iteration was the Ride Pass. That model featured a combo package that bundled Uber Eats deliveries and your standard Uber rides.
It would appear that recent setbacks have forced Uber to forge ahead with new gimmicks aimed at creating a profit. The idea behind this entire scheme is to increase brand loyalty.
Is Uber suffering from incursions in their markets?
The answer is yes. We recently reported that Uber Eats lost its exclusivity contract with fast-food giant McDonald’s. This is but one of the many areas where Uber is clearly feeling the squeeze. DoorDash has long been the leader in the delivery market, and many rideshare drivers are also getting into DoorDash.
Uber suffered a major setback by losing McDonald’s. Coupled with the fact that they are now facing more stiff competition across all of their offerings, Uber is looking for ways to entice customers back into the fold.
Look for the subscription model to be prevalent in years to come
This model is going to start popping up everywhere sooner rather than later. Even Uber’s primary rideshare competitor Lyft has launched its own All-Access Plan for a whopping $299 a month. That model features a bevy of 30 rides per month to the rider, covering up to $15 per ride. Should the ride go over, the rider would pay the difference. DoorDash also features its Dash Pass, and various other competitors are looking to cash in.
Uber claims they won’t be expanding Uber Pass anytime soon…
Subscription models are all the rage, and I, for one, would not expect to see this go away anytime soon. Uber has stated that they have no plans to expand this subscription bundle to other cities anytime soon. This leads me to believe they will take their sweet time before rolling it out into additional markets.
It’s an exciting time for Uber as they continue to expand their services and offer new products to their market. However, I hope they don’t forget to maintain the quality of their services. It wasn’t too long ago when there was a “glitch” in the system and riders were charged 100x their fare.
What do you think about Uber Pass?
Do you think this will help or hurt standard rideshare and delivery drivers? Let us know. We pride ourselves on listening to our readers who in turn help us continue to provide you with the freshest takes on all things rideshare.