Uber Technologies is introducing a shuttle service in the U.S. and a deal with membership retailer Costco as part of a series of initiatives announced Wednesday to woo price-sensitive consumers amid competition from rival Lyft. We are expanding our delivery partnerships.
This initiative was announced at the company’s presentation. Annual GO-GET event The ride-sharing and delivery giant aims to maintain growth beyond a strong 2023, when it reported its first-ever annual profit.
The San Francisco-based company announced it will now allow Uber Shuttle customers to pre-book up to five seats on buses that operate in high-traffic areas such as airports, concerts and sporting events.
Uber will partner with local fleet operators for the service, using vehicles with seating capacity of 14 to 55.
The company said it would allow users to schedule shared rides and announced student discounts for Uber One memberships.
On the food delivery side, Costco announced that it will offer U.S. Costco members additional discounts on orders through Uber Eats, as well as an ongoing offer of 20% off Uber One on annual plans.
Lyft doesn’t offer a shuttle service like Uber, but it does offer a transit mode feature that allows users to access nearby shuttle, train, and ferry schedules through the app.
Lyft has stepped up its competition with Uber in recent months by eliminating surge pricing as employees return to the office and demand for rideshares revives as people return to the office and take vacation trips.
Analysts have suggested that the North American market may be nearing maturity and that both companies may be exploring new avenues for growth, such as advertising or subscription services.
According to market research firm YipitData, fares for ride-hailing services UberX and Lyft Standard have remained largely unchanged over the past two years.
Uber shares rose more than 1% to $66.18.
