Uber Eats · B2C · food delivery app
Sell a monthly membership mainly to stop customers switching to rivals
Guest says members are way less likely to use a rival; no numbers
Workedretentionpricing
What they did
In a long-term use case with easy switching (food delivery, rides), sell a membership (~$9.99/month for Uber Eats in the US) as a retention tool. Since the core business makes the money, the subscription can be priced flexibly; its job is to stop switching. Used by Uber Eats, Uber, DoorDash and Lyft.
What happened
Guest: as a paying member he is way less likely to use DoorDash.
“so they end up building these kind of like pass products really as a retention tool. So like if I'm paying Uber Eats, I forget what their membership product is, but call it like $9.99 a month in the US, I'm way less likely to use DoorDash.”
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