Uber is introducing a new membership program that bundles rideshares, grocery and food delivery for a monthly fee in exchange for discounts and other perks, according to a press release.
The $9.99 monthly Uber One membership, or $99.99 annually, offers 5% off eligible rides and delivery orders, no-charge delivery fees and more. The announcement comes after the April launch of Uber’s Pickup and Go service, which enables rideshare passengers to pick up food and groceries on the way to their destination.
The new program aims to help boost customer acquisition and bring about a deeper sense of loyalty as more people turn to direct orders from restaurants, according to reports. Over 10% of new Uber Eats customers came to the platform via the platform’s ridesharing app.
Rideshares on Uber total 1.4 billion rides each quarter and accounts for 68% of the U.S. rideshare market, Restaurant Dive reported. Pulling its rideshare users into its food and grocery delivery segment could give Uber an edge over its main rival DoorDash, which has a 57% market share over Uber’s 24%.
Uber’s efforts at diversification beyond rideshare helped it survive during the pandemic. The company posted its first operating profit on an EBITDA basis in the third quarter. Beyond the $8 million in EBITDA posted, Uber’s earnings showed a continued acceleration in its rideshare business.
CEO Dara Khosrowshahi said on the earnings call that the company is “innovating into the demand” for resumed travel — where consumers can book cars as many as 30 days in advance.
“Our delivery business is even less penetrated than mobility,” Khosrowshahi said.
U.S. trips are up 20% since the start of September, with 60% of those rides being business trips.