Uber phases out free rewards program

Dive Brief:

  • Uber is ending its free Uber Rewards program, which grants users points for using the Uber and Uber Eats apps, per an email sent to customers over the weekend. Users will stop accruing points at the end of August, but can use their benefits through Oct. 31. 
  • Rewards members can access a free month of Uber One, which totals roughly 10 million global members as of the end of the second quarter.
  • Uber One made up 23% of overall gross bookings during the second quarter, CEO Dara Khosrowshahi said during Uber’s Q2 earnings call.

Dive Insight:

Uber One has been focused on delivery offerings as of late, Khosrowshahi said, as 32% of gross bookings for delivery come from members of the program. Uber One users in general also post about 2.7 times more gross bookings than non-members, he said. 

To sweeten the program’s value proposition, Uber also plans to increase benefits for ride share users, Khosrowshahi said. Uber One currently offers members $0 delivery fees, 5% off rides and 10% off delivery orders for $9.99 per month. Members on average save about $22 per month, according to the company. These bundled ride and food delivery perks could encourage more engagement and give Uber Eats an edge over rival offerings like DoorDash’s DashPass, which also costs $9.99 per month but only offers food delivery and pickup benefits. 

Uber has also been expanding its platform in a bid to attract new members. This week, it added a partnership with Office Depot, less than a month after it enhanced its grocery delivery program. Uber Eats customers who order via new verticals tend to have higher frequency, Khosrowshahi said.

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