Ride-hailing platform Uber on Wednesday rolled out the ‘Uber One’ subscription model for users in India, becoming the first such company to do so here. The feature was already available to users outside India, including in the US and Canada.
According to the company, the plan has been priced at Rs 149 per month and Rs 1,499 for the annual plan. However, information on the Uber app shows that up to 50% discount is available to certain users on the monthly plan.
Under the plan, Uber will offer up to 10% credits on ride-hailing for four-wheelers, three-wheelers and two-wheelers in addition to its parcel delivery offering.
Like cashback, these credits may be then used for future rides. However, they will be restricted to Rs 150 per trip. As of September 30, Uber One has 25 million subscribers globally. In its quarterly earnings call in October, the company’s CEO Dara Khosrowshahi had said that these subscribers spend three times more than the non-members.
“Retention rates are higher for members as well,” he said.
“And with 25 million members, up 70% year-on-year, you can see the momentum as it relates to that part of our business as well.”
The development comes at a time when the company’s main competitors in India are focusing on rapid expansion.
Ola has rebranded its cabs segment to Ola Consumer and re-introduced cab sharing.
WestBridge Capital-backed Rapido raised $200 million earlier this year and also introduced a subscription model for drivers. Against the traditional commission model, drivers under this model are paid a one-time fee for a certain number of rides.
Relatively younger Google-backed Namma Yatri has recently raised $11 million and rolled out subscription plans for drivers.
Under the Uber One subscription, Uber will provide preferential access to the highest-rated drivers and customer support to the users. Uber One members will also get access to Zomato Gold membership for three months.
