![]() ![]() Khosrowshahi has said bringing on Uber One subscribers has been initially loss-making because the discounts exceeded the value of their frequency. ![]() However, those acquisitions come with a price. Generally speaking, discounts lead to higher acquisitions because they provide customers with instant gratification, rather than the delayed gratification of cash back. What if this cash-back strategy signals that Uber is now pursuing customer quality over quantity? But as the company matures and shifts its attention from growth to profits, perhaps bringing on new customers is now a secondary goal. Uber has garnered a reputation for scaling rapidly with an almost cutthroat acquisition style. The points would then be used to get discounts on future services, access to highly rated drivers, free upgrades and other perks. The shift comes almost a year after Uber shut down its free loyalty program, Uber Rewards, which allowed riders to earn points for every dollar spent on rides or deliveries. Uber said in the email that other member benefits like the $0 delivery fee and up to 10% off eligible Uber Eats orders aren’t going anywhere, so those who signed up for the membership mainly for takeout deals can breathe a sigh of relief. Moving away from ride discounts also runs counter to CEO Dara Khosrowshahi’s statement during the company’s first-quarter earnings call that “the goal of Uber One is really we are giving a discount to our best customers in order to drive frequency.” “I only subscribed for the discounted rides, so I’ll go ahead and cancel now,” Harri Weber, a colleague and erstwhile Uber One subscriber, told TechCrunch.ĭitching the 5% discount might also send Uber users into the arms of Lyft, whose Lyft Pink membership still offers 5% off on rides. ![]()
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