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Uber launches a membership service fueled by its core advantage over Lyft

Snacks / Tuesday, July 23, 2019

Hungry and lazy?... There's an app for that. Uber is piloting a membership service in San Francisco and Chicago. For $24.99 a month, users will get a fixed discount on each Uber ride, free delivery on Uber Eats, and 30 minutes of JUMP bike-share and scooter rides per day for free.

Variety gets 5 stars... Technically, Lyft has a monthly subscription too (an unlimited pass called "All Access"). But Uber's competitive advantage is all the logistics options for a variety of daily needs packed into one monthly charge. Lyft doesn't have that. Need to drive far? Uber's membership covers it. Just need to scoot around the corner? It's covered. Want a gyro STAT? All included.

"Prime-ification" is happening... Amazon brought the club concept to a mass audience with $119/year (or $12.99/month) Prime. Uber's pulling the same move because it knows that once you commit, you're a sticky customer. Already paid the month's Uber membership fee? You won't even open Lyft (unless Uber's surge pricing is crazy). Membership programs thrive on that guilt — and the recurring, consistent revenue they drive may get more business models Prime-ifying.

PS: What will get "Prime-ified" next? Tweet your guess @RobinhoodSnacks.

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