Uber's price surging model has attracted all sorts of condemnation and controversy, but the company has always maintained that it was an important way for it to make sure it had enough drivers. I get that Uber needs a way to incentivized drivers to stick with its service, but surely there's another way to do that without sticking their hand into the pocket of their customers.
The answer to that has been Momentum, a perks program that Uber introduced in the United States back in November. It has apparently been so successful that the company is taking it internationally: Uber is launching Momentum in the United Kingdom, it was announced on Wednesday.
"Our vision of safe, reliable rides – anytime, anywhere and for everyone – is made possible by the thousands of partner-drivers who keep our cities moving," said Uber. "For drivers, their cars are their livelihoods, so we’re always looking for ways we can help them reduce the costs of running their vehicle, helping them build their business with Uber."
Some of the rewards include free MOTs, discounts of up to 35% on vehicle servicing, and discounts on car washing and valeting. It also offers lifestyle perks, such as a discount on online accountancy support and software from Crunch, which will help drivers be more aware of the tax implications of their earnings. Momentum also offers a flat fee when sending money abroad.
The perks can be accessed as of today, and Uber says it will continue to be add more in the coming weeks and months. Enrolled partners could receive over £900 worth of benefits every year.
There is one catch for drivers: it is only available for drivers who have completed 250 rides. So don't expect to sign up a driver today and start getting discounts.
Uber says that Momentum has been a "huge success in the US," though it offers no further details about how it has measured that success. The company also notes that it has "the ambition to take the program to other European countries too," but offers no more details about which specific countries it has in mind.
What I am especially curious about is whether Uber has any plans to roll Momentum out in Asia, as that region has been a huge source of big growth for the company; India has become the largest international market for Uber. VatorNews has reached out to Uber, but the company would only say it does not have any firm plans for more countries at this time.
If nothing else, at least offering perks and rewards might make it less imperative that Uber jack up rates during peak times, a practice that has irked passengers and gotten the company into trouble.
It all came to a head last month when the company was blasted for increasing prices in Sydney during a horrific hostage crisis that ultimately left multiple people dead. Some even reported fares going up as high as four times the usual rate, according to Mashable. A ride from the area to the airport cost some passengers between $145 and $185, for a ride that would normally cost $100.
Eventually the backlash forced Uber to offer refunds and start giving out free rides, but the damage was done.
Not that price surging is going away any time soon; not when Uber is trying to patent the idea. But maybe drivers will not be so quick to jump if they feel like Uber is taking care of them in other ways.
(Image source: get.uber.com)
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Uber is a ridesharing service headquartered in San Francisco, United States, which operates in multiple international cities. The company uses a smartphone application to arrange rides between riders and drivers.
