Uber is dropping the 5% discounts on eligible rides that it previously offered members of its Uber One subscription service, according to an email sent to customers. Starting on their next billing cycle, subscribers will now earn 6% so-called “Uber Cash” on eligible rides that can be spent on Uber and Uber Eats.
It’s a risky move for Uber as the ride-hailing and delivery giant aims to boost bookings among subscribers. Since Uber launched Uber One in 2021 for $9.99 per month or $99.99 annually, discounts on rides have been a huge adoption driver. According to Uber’s full-year earnings report, 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 who are in it for the discounts.