Uber to launch subscriptions in UK as cost of living crisis rages Business

Uber is launching a subscription service in the UK in a bid to entice customers to use its app for taxis and food deliveries as the cost of living crisis deepens.

The company said it would expand Uber One, the company’s answer to the Amazon Prime or Deliveroo Plus service, to the UK, Germany and Mexico.

The subscription, which costs $9.99 (£8.15) a month in the US, gives users discounts on Uber rides and free delivery on takeout orders, plus perks like drivers top rated, customer service and compensation for late orders.

Uber One is seeking to transform its ride-hailing and take-out business from an occasional convenience into a common part of people’s lives, in the same way that many Amazon Prime subscribers are turning to the website as their first shopping destination. ‘online purchase.

The company said it could help tackle congestion by reducing the number of private car owners if users could rely on Uber more frequently.

He did not say how much the subscription service would cost in the UK or when it would launch.

A spokesperson said, “We know users on our platform have been asking for a membership program, and we look forward to launching it for them soon.”

Subscribers to Deliveroo’s rival delivery service Plus surged last year after Amazon made the service available to its Prime members, with subscriber numbers quadrupling in the past year.

However, the launch comes as many households seek to reduce their monthly subscriptions amid the cost of living crisis. More than 1.5million UK households canceled all video subscriptions in the first quarter of the year, according to research firm Kantar.

Uber One subscribers spend 2.7 times more on Uber rides and delivery service than non-subscribers, chief executive Dara Khosrowshahi said earlier this month.

Uber won a 30-month operating license from Transport for London in March after years of tension with the regulator, but was forced to raise prices amid rising demand.

Court defeats have also forced the company to give its drivers minimum wages and paid holidays and pay VAT on journeys, something its main British rival Bolt has yet to do.

Mr Khosrowshahi said his UK business was profitable. UK users spent $954m (£778m) on Uber rides in the first quarter of the year, up from $907m in the last quarter of 2021.

Uber shares have fallen nearly 45% this year amid a tech selloff and renewed fears of a price war with the company’s biggest U.S. rival, Lyft.

More about this article: Read More
This notice was published: 2022-05-16 15:15:00

Leave a Reply

Your email address will not be published. Required fields are marked *