8 ms·

Uber launches rider loyalty rewards like credits

42 points by mkolodny 8y ago

mooman219 8y ago
This is pretty standard marketing and you see it a ton with insurance companies. They gamify their service to increase spending and decrease the number of users leaving for a different platform. I wonder how effective this will be for preventing users from using both apps to find the lowest price.
- k_sh 8y ago
  Insurance companies? I'm not sure I've ever seen an insurance company gamify anything.
  - freewilly1040 8y ago
    Not sure if this is what parent is referring to but most insurance companies offer a discount for having multiple lines of coverage with the same company (ie a discount for having your house, car, boat, whatever all with them).
kylelibra 8y ago
I'm surprised it took so long for rideshare companies to launch this feature (Lyft's version will be unveiled in December).
- x0x0 8y ago
  Lyft already has something like this deployed for business rides -- you get some credit for personal use after enough business rides.
  - iancarroll 8y ago
    Lyft also gives Delta SkyMiles now, which is enough for me to not use Uber again.
cm2012 8y ago
My app doesn't have it yet (NYC)
- cenal 8y ago
  NYC user here as well and no credits either. The current 25% off discount on Lyft makes it tough to even try Uber at the moment.
overeater 8y ago
If this is anything like frequent flier programs, my cynical interpretation is that if you're a casual rider, you'll get: - less leeway on cancellations since you now need to earn them - worse support, since the higher status folks will get the higher priority / premium support - slower airport pickup times as high status folks get to "cut in line" while you wait - lower quality drivers as the higher rated ones are given only to the frequent riders This is based on the chart showing the benefits of higher status in the article.
- dmix 8y ago
  I don't see why people who spend 10-100x more than the average person should be treated the same as a casual user who uses it once in a while though. That's basic economics.
  - wyattpeak 8y ago
    No, but I see every reason as an average user to oppose a strategy which will worsen the service for me. There's no moral obligation to support economic good sense. Yellow journalism is economic good sense. Removing contact details from websites is economic good sense. Exhausting common goods is economic good sense.
    - throwaway2048 8y ago
      Its disturbing the amount of people that seem to be unable to distinguish a moral argument from an economic or legal one. They seem to have the opinion that if something "economically" or "legally" makes sense, its the same thing as it being an acceptable idea that should have no issue taken with it.
    - xapata 8y ago
      Angering customers may not in fact be good economic sense. You may be thinking more short-term than you should.
      - wyattpeak 8y ago
Guest9812398 8y ago
So if I spend $250 on UberX rides I get $5 in credit? Hmm, that's going to be a pass on my end. In my city a local taxi company created an app similar to Uber, and it's typically 10% cheaper. Most people I know switched over to it, because it only takes a few seconds to do so. I'll take that 10% over 2% in Uber credit. Also, isn't it already determined that Uber offers higher prices to frequent travelers, and people that take the same route on a regular basis? So, if I spend $250 on UberX, they probably added more than $5 in there because I'm a regular traveler. Now, they're just pretending to be a hero by returning some credit. If they had flat $10 trips in my downtown, and I would get a free trip after 10 rides, then it would make more sense. As of now, I don't trust them at all to provide equal pricing for different users, so I don't trust their entire concept of a loyalty program.
hammock 8y ago
I was in the focus group where they tested this six or so months ago. Ask me anything.
- deleted 8y ago
  [deleted]
- MadTitan 8y ago
  What was the overall feedback from your group/ concerns etc?
Simulacra 8y ago
I switch to Lyft, but was surprised to see a semi-autonomous Uber drive by the other day in Northern Virginia. Pretty cool, but I still don't trust the company's corporate culture, and how they treat their drivers and the public, to consider going back.
i_am_proteus 8y ago
"Frequent user/loyalty" programs are, across sectors, implicit acknowledgement by companies that their products are indistinguishable from those of their competitors.

42 points by mkolodny 8y ago

This is pretty standard marketing and you see it a ton with insurance companies. They gamify their service to increase spending and decrease the number of users leaving for a different platform. I wonder how effective this will be for preventing users from using both apps to find the lowest price.

k_sh 8y ago
Insurance companies? I'm not sure I've ever seen an insurance company gamify anything.
- freewilly1040 8y ago
  Not sure if this is what parent is referring to but most insurance companies offer a discount for having multiple lines of coverage with the same company (ie a discount for having your house, car, boat, whatever all with them).

kylelibra 8y ago

I'm surprised it took so long for rideshare companies to launch this feature (Lyft's version will be unveiled in December).

x0x0 8y ago
Lyft already has something like this deployed for business rides -- you get some credit for personal use after enough business rides.
- iancarroll 8y ago
  Lyft also gives Delta SkyMiles now, which is enough for me to not use Uber again.

cm2012 8y ago

My app doesn't have it yet (NYC)

cenal 8y ago
NYC user here as well and no credits either. The current 25% off discount on Lyft makes it tough to even try Uber at the moment.

overeater 8y ago

If this is anything like frequent flier programs, my cynical interpretation is that if you're a casual rider, you'll get: - less leeway on cancellations since you now need to earn them - worse support, since the higher status folks will get the higher priority / premium support - slower airport pickup times as high status folks get to "cut in line" while you wait - lower quality drivers as the higher rated ones are given only to the frequent riders This is based on the chart showing the benefits of higher status in the article.

dmix 8y ago
I don't see why people who spend 10-100x more than the average person should be treated the same as a casual user who uses it once in a while though. That's basic economics.
- wyattpeak 8y ago
  No, but I see every reason as an average user to oppose a strategy which will worsen the service for me. There's no moral obligation to support economic good sense. Yellow journalism is economic good sense. Removing contact details from websites is economic good sense. Exhausting common goods is economic good sense.
  - throwaway2048 8y ago
    Its disturbing the amount of people that seem to be unable to distinguish a moral argument from an economic or legal one. They seem to have the opinion that if something "economically" or "legally" makes sense, its the same thing as it being an acceptable idea that should have no issue taken with it.
  - xapata 8y ago
    Angering customers may not in fact be good economic sense. You may be thinking more short-term than you should.
    - wyattpeak 8y ago

Guest9812398 8y ago

So if I spend $250 on UberX rides I get $5 in credit? Hmm, that's going to be a pass on my end. In my city a local taxi company created an app similar to Uber, and it's typically 10% cheaper. Most people I know switched over to it, because it only takes a few seconds to do so. I'll take that 10% over 2% in Uber credit. Also, isn't it already determined that Uber offers higher prices to frequent travelers, and people that take the same route on a regular basis? So, if I spend $250 on UberX, they probably added more than $5 in there because I'm a regular traveler. Now, they're just pretending to be a hero by returning some credit. If they had flat $10 trips in my downtown, and I would get a free trip after 10 rides, then it would make more sense. As of now, I don't trust them at all to provide equal pricing for different users, so I don't trust their entire concept of a loyalty program.

hammock 8y ago

I was in the focus group where they tested this six or so months ago. Ask me anything.

deleted 8y ago
[deleted]
MadTitan 8y ago
What was the overall feedback from your group/ concerns etc?

Simulacra 8y ago

I switch to Lyft, but was surprised to see a semi-autonomous Uber drive by the other day in Northern Virginia. Pretty cool, but I still don't trust the company's corporate culture, and how they treat their drivers and the public, to consider going back.

i_am_proteus 8y ago

"Frequent user/loyalty" programs are, across sectors, implicit acknowledgement by companies that their products are indistinguishable from those of their competitors.