Uber pilots subscription pricing to lift loyalty

By Aarthi Rayapura August 26, 2016

By Jennifer Van Grove

Uber is stealing a page from Amazon’s playbook and attempting to boost customer loyalty with a new subscription pricing option being tested in a handful of markets, including San Diego.

The pilot program, called “Uber Plus,” offers riders the choice of paying an upfront fee that locks in flat rates for trips in a month-long period. In addition to San Diego, the company is experimenting with the option in San Francisco, Seattle, Miami, Boston and Washington D.C.

“We’re always thinking about ways to make Uber an affordable, everyday option, and this is a small beta we’re running as part of that effort,” a company spokesperson said.

Prices vary based on market, but in San Diego, customers can pay $20 to access a $3 flat rate for all UberPool rides (shared rides), or $6 for UberX rides, during the month of the September. The flat fares are available all day, meaning fares won’t fluctuate based on demand, as they do with the standard Uber service.

“This is the natural next step for a company like Uber,” said Tom Caporaso, CEO of Clarus Commerce, which specializes in subscription marketing tactics. “Uber can take regular customers and make them loyal customers.”

Read the full article at: www.sandiegouniontribune.com

And read our interview with Nick Sampson of Faraday Future, a car company that’s using the subscription model to provide mobility as a service.