Uber, one of the biggest ride-hailing companies, launched the loyalty program ‘Uber One’ in India, aiming at improving the company’s engagement with its customers. The company introduced its users to monthly and yearly subscriptions in this new offering to be in line with evolving needs of the target clientele in a competitive marketplace.
PC: The Economic Times
Uber priced the subscription service at ₹149 per month or ₹1,499 for a yearly plan. The service offered discount of up to 50% on the monthly fee to early adopters. As such, the cost can be significantly lowered for a lot of the potential subscribers. This will help bring in users who will appreciate the benefits that the subscription provides.
Credits that can be enjoyed across a four-wheeler, three-wheeler, and two-wheeler as well as parcel services amount to up to 10% on ride-hailing services. Such credits act similarly to cashbacks where credits so earned are saved and availed when the same will be spent by the customer again in some of the future ride. In this manner, such incentive not only values the users but also stimulates repeat use of the same, driving customer loyalty and making this a huge reason to become a loyal one for such services.
Beyond incentives, the new members under Uber One would also benefit from priority support such that if they have some queries and issues, their concerns are resolved in due time. As the market increasingly becomes highly competitive, such forms of service provision become essential tools for generating customer loyalty.
The company also gives out free three-month Gold membership with Zomato to anyone who buys Uber One as part of the launch. The partnership adds value to the Uber One membership while at the same time aligning with the company’s strategy of creating synergies with other platforms that improve the experience of the user who will engage with both services.
Globally, Uber reported having 25 million Uber One members as of September 2024. The loyalty program has been successful as its members reportedly spend three times more than non-members and have higher retention rates. This impressive growth of 70% year-on-year reflects the program’s success in building a more engaged and profitable user base.
The launch of Uber One in India comes at a very critical time, when the company is fighting it out with emerging ride-hailing platforms such as Rapido, backed by WestBridge Capital, and Namma Yatri, supported by Google. These competitors are gaining ground in the market, so Uber has to not only hold onto its existing customers but also attract new ones through innovative offerings like the Uber One program.
This move by Uber to launch Uber One falls within the global trend of companies to invest in customer loyalty programs aimed at increasing retention and long-term relationships with users. As the landscape for ride-hailing evolves, Uber’s proactive action to launch this loyalty initiative proves the company’s dedication to holding onto its position within the market.
Thus, the launch of ‘Uber One’ is a strategic move by the company for customer satisfaction and engagement in the Indian market, which can increase its customer hold in such a competitive market in India. With the added benefits of financial incentives and priority support, as well as alliances with other services, Uber may continue to dominate and grow within this marketplace.
