Case Study:

Building Uber's

New Subscription Service

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Overview

  

Uber believes good things happen when people can move, whether across town or toward their dreams.  This has lead Uber to create a global ridesharing service. While they changed how people can request rides, it was only a starting point.

 

Uber’s offerings include Rides, Eats, grocery delivery, transit benefits, and more. Uber wanted to build a subscription program that would promote usage across their services and enhance relationship retention.

 

Uber partnered with Socratic to identify the price points and benefits to include in a
comprehensive subscription service that would help create a better user experience.

The Solution

Advanced Adaptive Conjoint Modeling

Build an Optimized Subscription Offering

  

Socratic employed an adaptive conjoint design to manage the large number of benefits tested. Other design considerations included rules on benefit combinations and total subscription pricing.

Modeling revealed the types of benefits (e.g. Rides, Eats, Transit) and individual benefits (e.g. 10% off all rides, $0 delivery fee on Uber Eats) that drive subscription interest.

Price-demand analyses were also produced to identify pricing thresholds based on the combinations of benefits included.

The analysis proceeded to identify benefits with targeted appeal (e.g. customer groups willing to pay more for Premium Ride benefits) that Uber can use for special offers & promotional marketing to specific customer groups.

The Outcomes

The Path For Uber To Successfully Launch A Subscription Offering

  

Socratic ultimately presented two subscription bundles for consideration.

 Uber opted to launch the solution with the most attractive core Rides & Eats benefits at a price point that would maximize revenue potential. 

The go-to-market subscription launched as Uber Pass and is available in hundreds of U.S. cities.  The initial offering included benefits for Rides, Eats, and grocery delivery.  However, this research also recommended a roadmap Uber can use for future enhancements. 

Uber has over 100 million users worldwide with net revenue of $14 billion dollars. Their services can be used in over 900 cities, across 93 countries.

Sources: https://www.statista.com/statistics/833743/us-users-ride-sharing-services, https://www.uber.com/,https://www.businessofapps.com/data/uber-statistics

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