Maybe you, like I, received a notification from Uber regarding “Uber Plus,” a new subscription service that Forbes reports is intended to foster customer loyalty. Did you act fast?
In San Francisco, Uber announced that the deal would work like this: Once you secure your Uber Plus rides, prepaying $20 for 20 trips or $30 for 40 trips, you can then apply them to rides. Uber Plus makes uberPOOL rides (shared rides with strangers taking a similar route) all a flat $2, so that's $3 for each uberPOOL ride if you bought the $20 package, and Uber Plus makes every UberX ride a flat $8 total.
A few caveats: You have to be riding north of Cesar Chavez, and if your ride is more than $20 for a Pool or $25 for an X, you pay the difference. "Planning to take more than 2 Uber trips per week this September?" the promotion asked. "You'll save big bucks with these low flat fares." One way to really save is by using your Uber Plus rides during surge pricing periods, as the surge won't apply to your flat rate.
The beta-testing cities for Uber Plus are San Francisco, Seattle, San Diego, Miami, Boston, and Washington D.C., and each has different promotions that apply. The company tells Forbes that the lower prices won't affect drivers, at least during beta testing — they'll continue to receive normal rate fares and surge price rates.
Uber is kind of in this cycle where they say they're making money, then it comes out that they just lost a lot of money, and then they lower costs to try to increase volume. Here we are again: Uber lost a whopping $1.2 billion in the first half of fiscal year 2016, Bloomberg learns, just after touting profitability last quarter. The company has lost big before. Uber says the culprit for the mounting losses is subsidies to Uber drivers.