Lyft All Access

The Uber Subscription Model

Uber’s Ride Pass is coming, and you should know what that means to your Rideshare Business! For a monthly fee of $24.99 (most places), a subscriber gets a discount on all the Uber X and Pool rides they want without EVER paying surge prices. They get FREE Uber Eats delivery and they also get 30 minutes free for Uber’s Jump eBikes and scooters where available. And if you think this is unique, try again, Lyft is doing it too with its All Access Plan that gives you 30 monthly rides for $299/month. It is like having Amazon Prime or Netflix, but for rideshare.

Tech companies, especially unprofitable ones like Uber, are growing increasingly interested in subscriptions as a way to lock in monthly recurring revenue streams. Uber aspires to be a one-stop-shop for transportation and delivery, and a monthly subscription helps underscore that mission. It can also lay the groundwork for an eventual driverless taxi service, which the company also aspires to launch.

The service is already available 20 cities in the US.

Ride Pass will now be available to customers who live in the following cities and regions: New York City, New York; Dallas, Texas; San Diego, California; Seattle, Washington; San Antonio, Texas; Las Vegas, Nevada; Phoenix, Arizona; Orange County, California; Baltimore, Maryland; New Orleans, Louisiana; Nashville, Tennessee; Portland, Oregon; Raleigh-Durham, North Carolina; St. Louis, Missouri; Jacksonville, Florida; and Memphis, Tennessee. They join the five launch cities: Los Angeles, California; Austin, Texas; Orlando, Florida; Denver, Colorado; and Miami, Florida.

Drivers get paid the same Time and Distance that they always did with Uber picking up the difference (if any). The pessimistic among us would say Uber is finding new ways to lose money, but that would be wrong.

By having a monthly, recurring, subscription fee the platforms get a nice steady income stream.  Sometimes they make more than it  costs, sometimes they make less.  They have done the math and I assure you it works in their favour.

As with all businesses (yours included), it is easier to keep a customer than get a customer. This locks people into your platform and at the same time encouraging greater use. The Lyft plan does not work for this goal, but the Uber one does. If I were a subscriber, I would walk past a Lime scooter and take a Jump. That is one less customer for Lime for example. If I could skip all surge prices and get a discount on any ride, then I would probably pick Uber as my next ride if push comes to shove. Advantage Uber.

As a Driver, the more people rideshare, the easier it is to get a ride. It should also increase the periods of use to allow more flexibility in when you can/should drive.

As a Gig Economy business owner, you should be worried as they are coming for your cheese. They do not want you to own or operate a scooter business, taxi business, or delivery service. These ‘tools’ allow them to out-compete all but the biggest competitors. This is the beginning of the return to transportation monopolies and there is nothing you can do about it.

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