Uber Technologies announced a series of initiatives on Wednesday, May 15th, including the launch of shuttle services in the United States and expanding its delivery partnership with membership-based retailer Costco, all aimed at attracting price-conscious consumers in competition with rival Lyft.
These initiatives were revealed during the company’s annual GO-GET event, following a strong growth in 2023 that marked its first annual profit, as Uber seeks to sustain the growth of this shared car and delivery giant.
Based in San Francisco, California, the company stated that Uber Shuttle users will be able to pre-book up to five seats on buses in high-traffic areas such as airports, concerts, and sporting events.
Uber will collaborate with local fleet operators to provide this service, utilizing vehicles with 14 to 55 seats.
Moreover, the company announced that it will allow users to arrange shared rides and revealed that Uber One members are now eligible for student discounts.
On the delivery front, the company mentioned discounts for US Costco members who order through Uber Eats, along with an ongoing 20% discount on the Uber One annual plan.
While Lyft does not offer shuttle services like Uber, it does provide a “Transit mode” feature where users can access nearby bus, train, and ferry schedules through its app.
In recent months, Lyft has intensified its competition with Uber, canceling surge pricing as demand for rides increased due to employees returning to offices and holiday travel.
Analysts believe that the North American market may be nearing maturity, prompting both companies to seek new growth avenues such as advertising and subscription services.
Data from market research firm YipitData shows that the prices of UberX and Lyft’s standard shared ride products have remained relatively stable over the past two years.