Taking an Uber to work? Your next ride might be cheaper
Uber is launching a new service called Route Share, a carpool-like option aimed at budget-conscious commuters.
Route Share will function somewhat like a commuter shuttle: 'consistent and frequent pickup options along direct routes,' running every 20 minutes during the peak commute hours of 6 to 10 a.m. and 4 to 8 p.m. on weekdays.
Commuters will walk a 'short distance' to designated pickup and drop-off points, and they may share rides with up to two additional passengers, Uber said in its announcement Wednesday. The service will launch in seven major cities, including New York City, San Francisco and Chicago, before expanding nationwide.
Uber says Route Share will save commuters up to 50% compared to the private-ride UberX service — notably higher than the existing UberPool pooled rides option, which is an average 20% savings, the company's website says.
The company is also rolling out two new ride passes aimed at reducing costs for riders. The Price Lock Pass, launching Wednesday in select cities for $2.99 a month, lets users lock in a price in advance for up to 10 routes. And a Prepaid Pass launching this summer will offer discounts on bundles of five, ten, 15 or 20 rides paid in advance.
The announcements come one week after Uber's quarterly earnings call, on which Uber CEO Dara Khosrowshahi said the company is focused on serving price-sensitive riders — while also boosting usage during peak commute hours.
The new features also align with the company's broader goal of competing with public transportation, giving Uber another way to serve its core market of commuting city dwellers.
Meanwhile Uber is leaning on other offerings like Uber Reserve — a feature that allows riders to schedule a trip up to 90 days in advance — to expand in the suburbs. Khosrowshahi said in his prepared earnings remarks that the company is seeing suburban customers 'increasingly turn to Reserve as the primary way they use Uber.'
For the city dwellers, Route Share will allow riders the flexibility to book a seat anywhere from ten minutes to seven days in advance. Uber is exploring partnerships to make the service eligible for pretax commuter benefits, another factor that could make it appealing to the 9-5 crowd.
The move builds on Uber's previous budget-friendly efforts such as Uber Shuttle, which launched last year and lets riders book up to five seats for group rides to events or the airport at a lower price. It also comes as consumer confidence has recently fallen to its lowest level since May 2020, meaning commuters could be looking to spend less on transportation.
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