Uber Launches Shuttle Service, Deepens Costco Ties

Zinger Key Points
  • At GO-GET 2024, Uber unveils new products and features.
  • Uber Shuttle lets reserve a seat on a local shuttle service, along with others heading to the same destination.

Uber Technologies Inc UBER is rolling out a shuttle service in the U.S. and expanding its delivery partnership with retailer Costco Wholesale Corporation COST.

Uber is introducing a shuttle service called Uber Shuttle. This service will help users reserve a seat on a local shuttle service and join others heading to the same destination, such as sporting events, concerts, and airports.

The company launched a new feature, UberX Share, that lets schedule a shared ride in advance to save an average of 25% compared to UberX.

Customers can reserve seat in an UberX Share anytime from 10 minutes to 30 days ahead, and lock in the price. 

The move is as part of a strategy aimed at attracting budget-conscious customers amid competition from rival Lyft Inc LYFT, according to a report from Reuters.

The shuttle service, facilitated through partnerships with local fleet operators, will utilize vehicles ranging from 14 to 55 seats, the report added.

In its partnership with Costco, Uber Eats will offer additional discounts to Costco members in the U.S., along with a standing 20% discount on the annual Uber One plan. 

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While Lyft does not offer shuttle services like Uber, it provides a Transit mode feature that allows users to access the schedules of nearby shuttles, trains, and ferries. 

Both companies are navigating a mature North American market and are exploring new growth avenues such as advertising and subscription services, per the report.

UBER stock has gained nearly 74% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Transportation ETF IYT and Fidelity Electric Vehicles And Future Transportation ETF FDRV.

Price Action: UBER shares are trading higher by 1.47% at $66.28 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

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