Uber Technologies Inc. (NYSE:UBER) has rolled out a new shuttle service across the United States and is expanding its delivery collaboration with Costco Wholesale Corporation (NASDAQ:COST) to appeal to budget-conscious consumers. These efforts were highlighted at Uber’s annual GO-GET event, which showcases new products and initiatives aimed at sustaining growth following a profitable 2023.
The San Francisco-based ride-sharing giant announced that Uber Shuttle will allow passengers to book up to five seats on buses that serve bustling areas such as airports, concert venues, and sports arenas. Uber is partnering with local fleet operators to utilize vehicles ranging from 14 to 55 seats for this service.
In addition to the shuttle service, Uber is introducing shared ride scheduling and a new student discount for its Uber One membership, further broadening its consumer offerings.
On the delivery side, Uber revealed enhancements to its partnership with Costco, offering additional discounts for Costco members ordering through Uber Eats. This includes a 20% discount on the annual Uber One plan, aimed at boosting subscription numbers and delivery frequency.
Meanwhile, Lyft Inc. (NASDAQ:LYFT), although not offering a direct shuttle service, continues to compete by enhancing its Transit mode, which provides users with access to local transit options like shuttles, trains, and ferries directly through its app. Lyft has also recently abolished surge pricing, aiming to capitalize on the increased demand for ride-sharing as more people return to work and travel during holidays.
Market analysts suggest that with the North American ride-sharing market approaching saturation, companies like Uber and Lyft are exploring new growth strategies, including advertising and expanded subscription services. Despite the intensified competition, pricing for standard ride-sharing options such as UberX and Lyft Standard has remained relatively stable over the past two years, as noted by research from YipitData.
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