Nov 16 (Businesshala) – Uber Technologies Inc (UBER.N) said on Tuesday it is restarting ride-sharing, which was scrapped during the pandemic, following previously high losses in the pooled ride segment Details of a revamped proposal aimed at reducing the
Uber said the new shared ride option, which allows strangers to split a car traveling in the same direction, began piloting in Miami on Tuesday, with no concrete plans yet for a U.S. expansion .
Known as Uber Pool, the new UberX share offers a 5% upfront discount compared to regular rides, Uber said. on your website, This is a more modest price reduction compared to Uber Pool rides, which in the past offered rides for half the fare of a private ride.
Passengers booking shared rides can now earn additional discounts in Uber credit, not cash, if another rider joins their journey. If a co-rider joins, they get at least $2 in Uber credits and up to 30% of the price.
Previously, passengers paid the pool rate even after they ended up sharing the ride. This allowed multiple passengers to book discounted rides without actually sharing the journey. Data from the City of Chicago showed that about 25% to 40% of all requested shared visits were not shared pre-pandemic.
Shared rides only made up a small percentage of pre-pandemic rides and Uber has said in the past that it was losing “significant sums” because of huge shared ride discounts.
Smaller US rival Lyft Inc (LYFT.O) in July relaunched its shared ride-hailing offering.
Both companies stopped the option to prevent the spread of the novel coronavirus in March 2020 and both require drivers and customers to wear masks. They limit shared rides to a total of two passengers, who are requested to sit in the back seat.