Uber to offer cashback as it drops ride discounts for subscribers

SAN FRANCISCO: Ride-hailing platform Uber has discontinued the 5 per cent discounts on eligible rides that it previously provided to Uber One subscribers.

According to an email sent out to customers, beginning with the next billing cycle, subscribers will earn 6 per cent 'Uber Cash' on eligible rides, which they will be able to spend on Uber and Uber Eats, reports TechCrunch.

Since the company launched Uber One in 2021 for $9.99 per month and $99.99 per year, discounts on rides have been a major adoption driver.

According to Uber's full-year earnings report, Uber One memberships increased by 100 per cent to approximately 12 million members in 2022.

While switching to a cashback offer allows Uber to increase its profit margins, it also risks losing customers who are only interested in the discounts, the report said.

Moreover, the ride-hailing platform stated in the email that other member benefits such as the $0 delivery fee and up to 10 per cent off eligible Uber Eats orders will not be affected, the report added.

Meanwhile, Uber has announced a new feature, which will allow users to book flights directly in the app for customers in the UK.

Uber partnered with Canada-based travel agency Hopper to sell national and international flights through the ride-sharing app.