Uber is testing a loyalty program that rewards riders with free journeys

Uber is testing a loyalty program that rewards riders with free trips

Uber despatched an e mail to LA riders yesterday saying they’re doing a short lived promotion that appears very very similar to a loyalty program.

Every UberBLACK journey taken will give riders 200 factors, and once they amass three,000 complete factors they are going to be rewarded with a free $25 greenback Uber journey. Primarily, this system is purchase 15 get 1 free.

Whereas the corporate has examined “VIP” loyalty packages in New York and Dallas, they have been structured to reward frequent riders with higher automobiles and particular occasions – neither have been loyalty packages within the conventional “purchase X get 1 free” sense.

It’s because Uber has by no means actually had a purpose to implement such a program – retention and ridership is at an all-time excessive, and the corporate actually has had no purpose to mess with its success.

Lets take a fast take a look at the economics, assuming your common UberBlack experience is $forty. 15 rides means you’re spending a complete of $600, and getting $25 in return – supplying you with a few four% “rebate” on Uber rides. Not dangerous, particularly contemplating the choice is nothing in any respect.

We reached out to Uber, who confirmed that that this system is a check for the corporate, and is the primary ever loyalty program on the west coast.

So why did Uber determined to lastly implement a rewards program?

Since it’s just for UberBLACK, it’s protected to imagine that the corporate is making an attempt to extend rides in that class, at the least in Los Angeles. As riders have flocked to UberX for its low costs, UberBLACK drivers have been those most affected by the misplaced enterprise. That is particularly true in cities like Philadelphia, the place UberBLACK drivers have truly began protesting towards UberX.

The promotion is just obtainable by means of July, and riders should choose-in by getting into the code LOYALUBERBLACK. If it’s profitable, its not exhausting to think about Uber rolling out this program to different cities (like Philadelphia) the place UberBLACK ridership is struggling.