Uber Tests Subscription-Based Uber Plus in Six U.S. Cities

Uber is testing a new subscription-based service, Uber Plus, in six U.S. cities including Boston, San Diego, Miami, San Francisco, Seattle and Washington, D.C.

Subscription News: Uber Tests Subscription-Based Uber Plus in Six U.S. Cities

Source: Uber

Uber’s website says, “There’s a ride for every price and any occasion.” That’s even more true now with the news that Uber is reportedly testing a subscription-based service called Uber Plus in six U.S. cities: Boston, Miami, San Diego, San Francisco, Seattle, and Washington, D.C., according to Business Insider. The monthly fee will vary between cities, but Uber Plus will work the same in each city.

Uber tells us that the beta test is very small and only available in the cities noted above. Riders pay an upfront subscription fee and get a certain number of uberX and uberPOOL rides for a flat price. Those rides can be used at any time of day, but in a limited part of the selected cities during the month of September only. There’s no change for drivers during the beta. They will continue to be paid by base, time and distance — and surge, when it applies — at the usual uberPOOL and uberX rates, an Uber spokesperson told Subscription Insider.

As Uber tests the service, there will be some restrictions. For example, the service will only be available within a certain geographic area within each city, and the subscription pricing is only available for uberPOOL rides up to $20 and uberX rides up to $25. If a rider exceeds those limits, they’ll have to pay the difference in cost. For those who use Uber frequently, this could offer a substantial savings and more convenience than securing a regular-priced ride as needed.

Here’s an example for Uber Plus subscribers in Boston. Subscribers can purchase a $40 package for up to 20 trips, or a $75 package for flat rates for up to 40 trips. UberPool rides are available for $2 each within a specific geographic area.

Subscription News: Uber Tests Subscription-Based Uber Plus in Six U.S. Cities

Source: Uber

Other cities have different pricing. Uber Plus in San Diego, for example, offers a $20 package for up to 20 trips, and $3 UberPool rides or $6 UberX rides.

Subscription News: Uber Tests Subscription-Based Uber Plus in Six U.S. Cities

Source: Uber

Why would Uber want a subscription service? Customer loyalty, says PYMNTS.com. With growing competition in the on-demand transportation market, Uber needs to further establish its brand and keep customers coming back for more. Recurring revenue streams are also a reason for Uber to test the subscription model. In this case, Uber is banking on the fact that some riders will get full value from their subscriptions while the use of Uber Plus by other riders will ebb and flow, helping Uber determine its breakeven point over time.

“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,” said an Uber spokesperson when Subscription Insider asked for comment.

Insider Take:

Obviously, we love the subscription model and love the innovation it allows companies like Uber to try. Uber, already a leader in terms of innovation, is trying out the subscription model on a limited basis to test customer interest, pricing and value. We always encourage testing, and it seems like Uber has a well laid out plan, trying six cities with pricing tailored to those audiences. If Uber Plus is a hit, we can see competitors like Lyft and Gett.

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