Officials told investors that Uber is planning to relaunch its carpooling service to counter rising prices. Uber Pool was shut down in March 2020 due to the COVID-19 pandemic. It remained that way even after vaccines became more widely available and customers returned the app.
Dara Khosrowshahi (Uber CEO) hinted that Uber could soon release a new shared ride product. Uber, like Lyft has struggled to recover from the pandemic. As drivers left the platform, the wait times increased and the price of rides went up, so too did Uber.
Khosrowshahi stated that we are launching an Uber shared-pool product. Khosrowshahi said that we have been investing over the years in high-capacity products, which are becoming more appealing because they relate to a unit economic basis. This can lower the price.
Uber's prices have risen 20% compared to last years
Although prices for Uber have increased by 20 percent over last year, they are still quite high compared with pre-pandemic levels. Khosrowshahi stated that introducing a low-cost carpooling option will increase demand for Uber's main ride-hailing services and help bring their prices down.
Uber Pool was the most affordable option on the company's platform. It matches riders based on their destinations with up to three cars. The service was criticized by drivers for having low customer ratings and an inefficient algorithm. They also complained about the roundabout directions that riders find annoying despite the low fare.
COVID-19 banned strangers from sharing a car's back seat. New York City banned sharing trips to stop the spread of the virus. Lyft also stopped Lyft Line's carpooling service.
Uber Pool may be different when it returns. Khosrowshahi suggested that it might be more like an employee shuttle service that Uber uses its matching technology to sell to its corporate client. The spokesperson for the company said that the employee shuttle was a separate effort to the carpooling service. However, she declined to give more details.
This won't likely affect Uber's pricing in the short term. Khosrowshahi admitted that Uber is currently in a huge pricing experiment that nobody wanted to enter.
Uber however reported that Q3 gross bookings (the amount Uber takes in before it pays drivers) reached an all-time high at $23.1 billion. This was despite a 20% price increase.
Khosrowshahi stated that people use the product more often when cities are reopened.
