Uber, the private car service for urban executives, is expanding beyond its current business model to explore business opportunities at a lower price point.
Uber calls itself “your on-demand private driver,” per a description at its website. Three key features define its value proposition: the ability to use a smartphone’s map application to send your location to the driver; text alerts that say when to expect the car; and — most notably for payments executives — an integrated commerce system that charges customers without the need for any card or device presentation.
Those services cost money — and indeed, Uber is said to cost “at least 50% more than a taxi,” per TechCrunch. To date, enough customers have been willing to pay a premium for upgraded service to sustain the business’ growth.
But now Uber executives say they are actively seeking out business at a lower price point. The new effort is being driven by Uber Garage, a home for present and future experimental features being tested by the company. Its first test: integrating with taxicabs.
The rollout is very limited, according to a report filed by TechCrunch, with just “a few” riders seeing the Taxi option in their Uber apps. But Chicago Uber manager Allen Penn says drivers there “have been very responsive to the idea” of working with Uber.
The test is in its very earliest stage, but Uber anticipates conducting a city-by-city analysis to evaluate whether the solution would work on a larger scale.
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