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Uber launches a rewards program, and Lyft announces one too

By Ad Age

Uber is rolling out a new rewards program, offering its most loyal users cash back on rides, priority airport pickups and free phone supportRead full story

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  • It’s amazing it took them this long to launch a program like this, given their biggest challenge is unit economics and customer retention. I would expect these programs to powerful mechanisms of inducing customer loyalty.

  • Remember that Uber was founded on the feeling of being a badass by summoning a car with your phone. The smart part here is the features that are only available to frequent users. Because money is fungible, it makes a poor reward - it doesn’t have meaning or experience. But like an Amex Black Card, if

    Remember that Uber was founded on the feeling of being a badass by summoning a car with your phone. The smart part here is the features that are only available to frequent users. Because money is fungible, it makes a poor reward - it doesn’t have meaning or experience. But like an Amex Black Card, if you can create features that are about feeling powerful and then use them as a reward for loyalty, you can increase share-of-rides.

  • Rewards programs find their way to ride sharing.

    Interestingly Uber rewards isn’t betting on cash being the main driver of loyalty: “The cash-reward component of the program is so small as to be almost an afterthought. For example, riders will be able to earn $5 for every $250 they spend on taking rides

    Rewards programs find their way to ride sharing.

    Interestingly Uber rewards isn’t betting on cash being the main driver of loyalty: “The cash-reward component of the program is so small as to be almost an afterthought. For example, riders will be able to earn $5 for every $250 they spend on taking rides on UberX. The company is instead emphasizing enticements like allowing riders to lock in the price of a trip between two locations, such as home and work, to avoid surge pricing during busy hours. Diamond-level patrons will also be able to receive customer support over the phone.”

  • Will be interesting to see if this increases loyalty to one brand or if people will still decide on price. When I need a ride, I get the estimate from both apps first. Not sure how much a reward would influence that.

  • Service based rewards do a better job of keeping wealthier customers and creates a 'club' feel like Uber did when it first started. Gives you a reason to stick with Uber over just price or convenience.

  • Rewards program will be able to create sticky users.

    I want to know how to use rewards.

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