Uber (UBER.US) announced on Wednesday that it will launch a shuttle service to and from airports, concert venues, and stadiums.
$Uber Technologies (UBER.US)$It was announced on Wednesday that shuttle services to and from airports, concert venues, and stadiums will be launched. Uber also announced that$Costco (COST.US)$It will join its delivery platform Uber Eats as its grocery partner.
Until now, Costco's same-day delivery service has only been available through$Instacart(Maplebear) (CART.US)$Provided. The news caused Instacart's stock price to drop 7%. Uber increased by as much as 2%.
Uber said it will partner with local fleet vendors to provide shuttle services. In addition to providing a shuttle service at the airport, it will also provide shuttle services to concert venues and stadiums.
According to Uber's report, the company previously only offered this fixed-route service in Egypt and India, or offered employer-paid corporate commuting services in the US, Brazil, and Mexico.
As Uber's total bookings have been slowing, investors are increasingly concerned about whether the company can maintain double-digit growth through new products. Low-cost products such as shuttle services can help them control costs and increase customer engagement. Uber launched a shuttle service in Egypt in 2018, and the company found that customers use Uber shuttles twice as many times as many times as UberX each month.
Uber announced several new services at its annual product launch in New York on Wednesday, including a shuttle service and partnership with Costco, early booking of a low-cost ride-sharing service, and a 50% discount for college students on the Uber One membership program.
Bloomberg Intelligence analysts said Uber's announcement could “help accelerate the growth of monthly active users” and “herald an increase in travel frequency.”
According to a semi-annual US gig economy study published by TransUnion on Tuesday, millennial and Gen Z customers are far more likely than the older generation to use ride-sharing and food delivery services once or more per week. Among respondents in these two age groups, about one-third said they spend between $250 and $750 per month on gig services. People of all ages say they use grocery delivery services more often than other gig services.