• by Tanya Gazdik , May 16, 2024

Uber is planning several new products, including a service that allows users to reserve seats on a shuttle heading to destinations like an airport or concert. 

Uber Shuttle will cost less than the cost of a regular Uber ride. 

“The cost of the shuttle rides won’t be affected by surge pricing, a common affliction when lots of people are looking for rides at the same time,” according to CNN Business. “Riders can book their space on the shuttles, which will hold between 14 and 55 seats, up to a week in advance and will receive a QR code ticket to board. Uber plans to partner with local shuttle companies with commercially licensed drivers to facilitate the offering, but users will be able to rate and tip drivers within the Uber app like with any other ride.”

Another new service will allow caregivers to book rides for their loved ones and order items like medical supplies and groceries on their behalf.

“The product updates reflect Uber’s continued push to drive growth and demand across its mobility and delivery business segments,” according to CNBC. "The new features could help the company attract more riders and users to its app.”

Uber announced that Costco items will be available as an on-demand option within Uber Eats in select locations nationwide. Users can order products from Costco even if they are not members, but Uber said members will save between 15% and 20%.

“Taken together, the announcements are designed to give people even more reasons to use its products, while focusing on affordability with group rides and other discounted offerings,” according to CNN Business. “The strategy comes at a time when consumers are pulling back on spending in the face of higher prices for a range of goods, from groceries to clothing. The diversification of Uber’s business beyond traditional ride hailing has also helped it maintain its leadership position over rival Lyft.”

The initiatives were unveiled at the San Francisco-based ride-share and delivery company’s annual event for new products. They are meant to maintain growth after the company reported its first-ever annual profit in 2023.

“While Lyft doesn't provide shuttle services like Uber, it offers a Transit mode feature, enabling users to access schedules of nearby shuttles, trains, and ferries through its app,” according to Reuters. “In recent months, Lyft has intensified competition with Uber, eliminating surge pricing amid a resurgence in ride-share demand driven by employees returning to offices and holiday travel.”