Uber Developing Price-Lock Pass to Compete with Lyft’s Popular Feature

Uber Technologies Inc. is reportedly working on a new paid offering called “price lock pass,” which would allow commuters to lock in prices for frequent rides ahead of time, rivaling a similar feature launched by Lyft Inc. five months ago. According to a Bloomberg News review of the publicly available code behind Uber’s iPhone app, riders would be able to purchase a monthly pass for $2.99, enabling them to cap prices for a designated route during a one-hour window each day. This feature aims to help commuters avoid surprise price increases during busy times, commonly known as “surge pricing.”

The code indicates that users can save as much as $50 a month with the price lock pass, which would ensure they pay the same price, or less, on UberX rides. An FAQ page for the product is already live on Uber’s website, although it currently contains no text. An Uber spokesperson declined to comment on the code findings, and there is no guarantee the company will ultimately launch the feature. However, the engineering work on it suggests that Uber is considering such a move.

Price-guarantee plans represent a potential new source of revenue for Uber, which has recently reported a slowdown in US rideshare bookings affecting its core mobility unit. Lyft, Uber’s biggest rival in the US, launched a similar feature with the same name last August, which has proved popular with riders. The company reported that commuters accounted for nearly half of Lyft’s weekday rides in the July-to-September period, and its Price Lock feature exceeded performance expectations, prompting it to issue fourth-quarter earnings guidance that beat projections. Lyft’s pass is also priced at $2.99 a month, with savings capped at $40 per month per pass. The company allows users to hold as many as 10 passes at a given time.

It would not be the first time Uber has launched a subscription product billed as a way for consumers to save money. In 2018, the company debuted “Ride Pass,” a $14.99 monthly plan that gave riders cheaper prices on unlimited rides. The product later evolved into its current $9.99-a-month Uber One membership program.