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Uber launches subscription service priced at $14.99 a month

Posted: 31 October 2018 | | No comments yet

Paying a monthly subscription to Uber, for a service called Ride-Pass, could save on average 15 per cent as it prevents surging prices caused by traffic, weather and popularity.

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Uber has introduced a monthly subscription service to its users. 

In Denver, Austin, Orlando and Miami the service will cost $14.99 a month. To use the service in Los Angeles it will cost $24.99 a month, however, this charge is expected to include e-bikes and scooters too. 

The service, called ‘Ride-Pass’, is estimated to save individuals up to 15 per cent on their overall monthly travel, as it prevents the surge in prices during peak times. According to The Verge, passengers can track their savings via the Uber app. 

There is no limit to the number of rides passengers can take each month as part of their subscription, and it can be cancelled at any time. The user will not be refunded if they cancel part-way through a month. The subscription auto-renews, so remembering to repurchase the pass every month is not necessary. 

Dan Bilen, Product Manager at Uber, said: “We’re really keen to make sure this is priced to the point where people can buy the pass [and] not have to think too much about it. The vision for Ride-Pass is it makes Uber a budgeted line-item for riders.”

The Business Insider claimed that “an Uber representative said driver compensation won’t be affected by the service, as drivers will earn the same rate they would driving a passenger who does not subscribe to Ride-Pass”.

Similar to Uber’s new scheme, Lyft launched a service called the All-Access Plan in October 2018. This service will cost $299 a month and allows users 30 rides within that time. Moreover, the service only covers journeys that cost up to $15 each, if a ride costs more than $15, the passenger must pay the difference.

Manik Gupta, Head of Product at Uber, said“There are various different mechanisms with respect to how we think about the economics of this. This is a unique structure that really meets the needs of our customers. That’s our focus right now. Over time, as we have more riders using our platform, all the rest will follow.”

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