Uber Considering Flat Rate Program to Increase Sense of Customer Loyalty

There’s no arguing that Uber has changed the way people look at transportation. Once a necessity, cars have become obsolete for thousands of commuters in crowded cities like San Francisco and Boston. The ridesharing service has already overtaken traditional taxis in NYC, and continues to grow as a viable option for everyday commutes. The company is singlehandedly shifting the way in which customer experience is viewed, and a new pricing model is set to jumpstart its brand loyalty as well.
 
This model comes in the form of a pilot program rolling out in select cities where Uber has transcended an occasional ride home: namely San Diego, Seattle, Boston, San Francisco, Washington D.C., and Miami.
 
Users will pay for a “package” of rides usable throughout the month, varying by city (for example, Miami riders will pay $30 for a 20-trip package in the upcoming beta test, while San Diego riders will only pay $20 for the same number of rides). Once these rides are purchased, each one will cost a guaranteed flat rate, again varying by city ($5 for UberX in Miami, $3 in San Diego). Perhaps the most significant factor is the avoidance of surge pricing, a fare multiplier that goes into effect during hours of peak demand.
 
Besides offering a model that provides a notable discount for dedicated Uber riders, the program will serve to cement Uber as the go-to option for those looking for a ridesharing service. Where users now may turn to competitors like Lyft when faced with surge pricing or long waits, flat rates will kickstart loyalty and give riders a reason to remain with the service.
 
There is a catch to the low flat rates, however: Rides are only eligible within a relatively small area generally covering the downtown area. While unfortunate for those looking for transit across Suburbia, the program is clearly targeted at downtown residents who use the service as their primary method of daily transportation.
 
The program has yet to be slated for a full release, but select riders in each of these six cities will be able to opt into next month’s beta test on a first-come, first-served basis. More information and a FAQ can be found on the program’s individual city pages, and Loyalty360 will keep an eye on the story as it develops. 

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