uber to launch loyalty program rewarding riders with free trips - egiftafrica.com

Uber to Launch Loyalty Program Rewarding Riders with Free Trips

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Uber sent an email to LA riders yesterday announcing they are doing a temporary promotion that looks very much like a loyalty program.

Each UberBLACK ride taken will give riders 200 points, and when they amass 3,000 total points they will be rewarded with a free $25 Uber ride. Essentially, the program is buy 15 get 1 free.

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While the company has tested “VIP” loyalty programs in New York and Dallas, they were structured to reward frequent riders with better cars and special events — neither were loyalty programs in the traditional “buy X get 1 free” sense.

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Let’s take a quick look at the economics, assuming your average UberBLACK ride is $40. Fifteen rides means you’re spending a total of $600; and you’re getting $25 in return — giving you about a 4 percent “rebate” on Uber rides. Not bad, especially considering the alternative is nothing at all.

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Since it’s only for UberBLACK, it’s safe to assume that the company is trying to increase rides in that category, at least in Los Angeles. As riders have flocked to UberX for its low prices, UberBLACK drivers have been the ones most affected by the lost business. This is especially true in cities like Philadelphia, where UberBLACK drivers have actually started protesting against UberX.

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