Taxi giant, Uber, offers unlimited rides on a subscription basis.
Uber is fast overtaking its competitors as it grows at an unprecedented rate. In its most recent round of funding it was pegged at USD 62.5 billion, and it now sits alongside Mcdonalds, Apple, Facebook, Disney and General Motors as one of the world’s largest companies. Springwise has covered a number of innovations looking to fill gaps in the ride sharing economy, or to outperform Uber in certain areas. Amongst them, a non-profit startup that fills the space left when Uber left Austin Texas, and a startup that launched a fleet of driverless taxis, just pipping Uber to the post. Now the multi-billion dollar company is trialling a subscription model which incentivizes using Uber over other competitors.
The trial offers unlimited rides for USD 100 for two weeks or for USD 200 for the month through customers’ Uber Plus. Described as a “small beta project” by a spokesperson, the trial currently only works below 125th Street in Manhattan and all rides must begin and end in the borough. To be eligible, riders must travel using UberPOOL – taxi trips that you share with other passengers going in a similar direction. Uber claims that fares average out to about USD 5 or less but, according to the pricing structure, travelers must pay the excess for rides that cost over USD 20.
Much like an Amazon Prime subscription, this pricing option seems to be designed to entice people away from other competitors like Lyft. How will rival operators respond to this new tactic from Uber?