Yesterday, Uber launched Ride Pass, a monthly subscription service that will be available in five cities across the United States: Austin, Denver, Los Angeles, Miami, Orlando. The price of the subscription will be $14.99 a month in all cities except Los Angeles, where it will cost $24.99 a month. Buying into Ride Pass will allow Uber riders to lock in flat rates on all UberPool and UberX trips they take over that month, without being subjected to price increases from surge pricing, traffic or other external factors. Uber joins Lyft, another American ride hailing company who also released its subscription service this month, as ride hailing companies look to create incentives to prevent users from jumping to other apps searching for shorter wait times or cheaper fares.
For riders, Uber is trying to make this decision as easy and simple as possible with features such as auto-renewal and savings tracking, where riders who subscribe to Ride Pass will be able to see their savings (from locked in fares) in real time through the app. For drivers, Uber will cover the difference between the cost of the driver's time and distance driven and the locked in fares Ride Pass users receive ensuring that the savings riders receive have no effect on driver earnings.
Lyft's subscription service, called All-Access Plan, was rolled out nationally in the middle of October with a price of $299 per month. All-Access Plan provides subscribers with 30 rides with a cost of up to $15. If the ride happens to cost more than $15, the subscriber pays the difference. Lyft's announcement of the subscription service indicated that the service was intended to help its users get rid of their personal cars and rely solely on Lyft for the majority of their daily travel.
Lyft and Uber are both expected to go public in 2019.
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