Uber One's Farewell to Flat 5% Discounts, Offers Cashback For Other Uber Services - Uber Technologies (NYSE:UBER)

Uber Technologies, Inc UBER dropped the 5% discounts on eligible rides for its Uber One subscription service.
Starting their next billing cycle, subscribers will earn 6% of so-called “Uber Cash” on eligible rides that users can spend on Uber and Uber Eats, TechCrunch cites from an email the ride-hailing company sent out to customers.
In 2021, the Uber One subscription for $9.99 per month or $99.99 annually, which offered rides discounts, has been a significant demand driver.
Uber One memberships grew 100% in 2022 to roughly 12 million members.
While Uber can increase its profit margins by switching to a cash-back offer, it also faces the possibility of losing customers for the discounts.
Ditching the 5% discount might also lead to losing users to Lyft, Inc LYFT, whose Lyft Pink membership still offers 5% off on rides.
Uber retained benefits like the $0 delivery fee and up to 10% off eligible Uber Eats orders.
The change comes almost a year after Uber shut down its free loyalty program, Uber Rewards, which allowed riders to earn points for every dollar spent on rides or deliveries.
In May, Uber reported first-quarter FY23 revenue growth of 29% year-on-year to $8.82 billion, beating the consensus of $8.72 billion.
Trips grew 24% Y/Y to 2.1 billion, or 24 million per day.
Revenue from Mobility grew to $4.33 billion (+72% Y/Y), Delivery was $3.09 billion (+23% Y/Y), and Freight at $1.40 billion (-23% Y/Y).
Price Action: UBER shares traded lower by 0.59% at $37.34 premarket on the last check Wednesday.
Photo by Gerd Altmann via Pixanbay

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