Uber Technologies Inc. is rolling out its Uber Pass - a monthly membership designed to provide consumers an all-in-one bundle of benefits.
"We're excited to share today a big step forward in this effort with expanded services and features designed to help you navigate the new normal," Uber said.
Uber Pass: Unlocking savings across Uber services
Uber tested the subscription plan in August 2019. The trial was an expansion of the Ride Pass, which only offered lower rates on individual rides. Uber Pass is now available for $24.99 a month.
Considering its monthly fee, Uber Pass will provide substantial savings for regular users of the services. The monthly membership will unlock savings on rides, Uber Eats, and grocery deliveries. The membership plan is good for one month and renews automatically. However, subscribers can cancel their membership anytime.
Among the perks of the Uber Pass are a 10 percent discount on every UberX, UberXL, and Uber comfort ride. Members also get a 15 percent off on every premium ride. Likewise, Uber will take 5 percent off on Eats order of over $15. Also, members get to enjoy free delivery on Uber Eats orders of over $15. And grocery orders of over $30 will also be delivered free of charge.
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The Uber app has also been redesigned. The revamped app will bring together services such as rides, Eats, grocery, bikes/scooters, and other ride options. Shortcuts to previous destinations and frequently ordered restaurants will be rolled out soon.
Uber Pass excludes California
Uber Pass is now live in cities across the U.S., except California. A recent court order mandated Uber and Lyft to reclassify their drivers in the state of California as employees. California accused Uber and Lyft of violating AB-5 law requiring companies to classify gig workers as employees.
On Monday, Uber said it would continue operating Uber Eats even if its ride-hail service is forced to close in California. An Uber spokesperson said Eats did not appear to be impacted by the court order.
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Eats has kept Uber afloat during the pandemic, Reuters reported. As people were forced to stay home, delivery orders have more than doubled. In contrast, ride bookings dropped 75 percent from 2019.
In the first quarter of 2020, Uber's rides bookings declined 3 percent compared to last year. Gross bookings rose to $15.8 billion. That is an increase of 8 percent year-over-year. Meanwhile, Uber Eats bookings were up 54 percent year-over-year.
A recent report by the New York Times said that Uber and Lyft are now considering a franchise-like model in California. Uber has a similar model in Germany and Spain. The business model would allow companies to operate a ride-hailing business using their platform. By establishing a franchise-like model, ride-sharing will no longer be Uber's primary business.
A spokesperson for Uber said that the plan is still exploratory and whether a fleet model is viable in California is still unsure.
