Uber Is Testing A Points Based Loyalty Program — Here Are The Details

For many of us, ridesharing has almost become a necessity (as many living in Austin can attest to, given that Uber and Lyft both recently pulled out of the market).

While we’ve seen a ton of money spent on marketing from ridesharing apps, interestingly we haven’t seen a full out loyalty program yet. As of now there are a few ways riders are being rewarded:

Uber

Per Doctor Of Credit, Uber is testing a loyalty program in Los Angeles for a limited time. Here’s how it works:

  • Enter code LOYALUBERBLACK on your “Promotions” page to see if you’re eligible for this test
  • You earn 200 points for every UberBLACK ride you take
  • When you earn 3,000 points, you get a $25 Uber credit

Uber-Loyalty-Program

In other words, you receive a $25 Uber credit after 15 UberBlack rides. Or to simplify it even further, in increments of 15 UberBLACK rides you’re getting a discount of $1.67 per ride.

Now, I think it goes without saying that this isn’t a huge reward, though I do always find Uber’s thought process in introducing these tests to be interesting.

On one hand I understand why they want to reward UberBLACK rather than UberX, given that UberX is a third the price of a taxi (at least in Los Angeles). At the same time, Uber’s biggest competitor is Lyft, and they only compete with UberX rather than UberBLACK.

So I suppose what they’re trying to see is whether they can influence consumer behavior and get people to choose UberBLACK in place of UberX.

In LA, UberX charges 90 cents per mile, while UberBLACK charges $3.55 per mile, so it’s about four times as expensive.

UberLA-Cost-1

UberLA-Cost-2

Bottom line

Uber sure loves testing different concepts, and most of the concepts never seem to be expanded. I find this test especially interesting, since it’s the first time (that I know of) that Uber is introducing a points system. I suppose it makes sense that they’re introducing this on their higher margin UberBLACK offering, and are instead competing on price with UberX.

I do wish that all of these tests would be global rather than just in one market. The beauty of Uber is that it’s available in so many places, so why not reward people for taking UberBLACK rides in different markets, rather than in just one?

Would this Uber loyalty program concept impact your ride behavior?

Comments

  1. Worked for me in DC. I use UberBlack maybe 10 times a week, so this program is going to be something of a boon for me.

  2. Since the majority of my Uber experience is for business travel, these types of loyalty programs are worthless to me. Any time I am using some travel mode, I should benefit and not the company since I am the one experiencing the hassle. This is similar to hotels that want to issue you a credit to your bill for issues in the room which means I am put out but my employer benefits. I always respectfully ask for points rather than credit to my bill.

  3. You should receive points in a multiple of the rating the driver gives you.

    If they believe in their sketchy ratings so much, they should put their points where their mouth is.

  4. A few days ago I noticed an $8 credit in my uber account that showed up sometime between Wednesday and Sunday. I only ever take UberX or pool, but this program is the only thing I can think of that would result in that $8 credit.

  5. Even if I regularly used black cars, this reward is so poultry I can’t see why people would be interested or how this could influence spend behavior. I really question how they thought this up, and came to the conclusion it might be intriguing to consumers given how little they are rewarding these customers. There is very little value proposition in getting less than $2 “credit” per ride. Now an example of a good promotion was the flat 20% off that just expired with Capital One or the ongoing SPG points earning promotion especially in conjunction with a hotel stay. The SPG promotion has been one motivating factor for me to use SPG more where as before I was 99% exclusive to Hyatt.

  6. They’re effectively testing what some airlines are moving to – rewarding dollars spent and revenue (Uber Black) as opposed to just cheap distance (UberX).

    And no, at current loyalty program details, I wouldn’t do it. I’m happy with my incremental SPG points.

  7. Finally the reward program that everyone’s need Mi/le is a new app in development now is going to be a platform where anybody can sign up and link Uber or lyft and can earn points from every mile spent on rideshare, reedem those points for gift cards or free rides, this idea was developed by a driver that drove for both rideshare and he states that rider appreciation is very important to retain riders and easier than getting new ones, other features that will be great is finding the cheapest ride on the busiest times while some rideshare company go on double the price rates, the idea for this app was made by a bright marketing guy by the name of Mohamed hussain ajaj in San Francisco area , I personally support the idea and I thing it’s time that I get some points from being loyal to the ride share world

Leave a Reply

Your email address will not be published. Required fields are marked *