Merchants Coaxed Into Subsidizing Rides With Uber Offers

Uber, the Uber of cab-hailing apps, announced its first nationally available Uber Offer this week. Uber Offers is a service that allows retailers and merchants to subsidize rides as a reward for shopping with the company’s partners.

The company is apparently aiming to increase engagement among its users and reduce churn with rebates anywhere from $5 to $20 up for grabs from partners.

Uber has launched several smaller scale tests of this service with Shake Shack, Dunkin’ Donuts and Whole Foods in various cities around the country. However, the first national campaign comes from ProFlowers just in time for Mother’s Day on Sunday.

The ads are served to the user with an interstitial, and then, if the customer makes the required purchase with whichever credit card is integrated with their account, they can get money credited to their account for their next ride.

TrialPay, a company acquired by Visa that brings developers and advertisers together to support rewards offered to consumers, runs the service. As of now, Uber reportedly doesn’t make money from the rewards, but if Uber Offers proves successful, it could become a new revenue source for the company.

Uber has offered rewards before, but they haven’t depended on a purchase outside of the app. With Lyft beginning to offer stiff competition and other startups popping into the ride-sharing space, Uber is tweaking its strategy with a reward/loyalty program to stay ahead of rivals.


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