Uber releases Local Offers so Visa cardholders can earn discounted rides
Uber is already an integral part of many people's commutes, but now the ride-hailing giant wants to buy loyalty from its users via purchases made during the rest of the day.
It has partnered with Visa on a new program called Uber Local Offers, the companies announced Tuesday.
Uber riders who have a Visa credit card registered in the app will be able to earn points at hundreds of participating merchants. For every dollar spent, Uber riders earn one point, where 100 points translates to $10 off a ride.
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The program is Uber's latest effort to incentivize riders to take Uber, amid the constantly growing number of ride-hailing competitors, and keep the experience at top of mind even when you are not in a car.
"This isn't about earning points for riding more with Uber. This is about earning Uber points when you spend in places you like," Uber Product Manager Drew Quinn told Mashable. "We hear from riders all the time that they want more ways to get ride discounts and free rides."
Now, in participating cities, the app will have a new tab called Local Offers on the left drop-down menu. App users can swipe through all available offers nearby and enroll. There is no limit to the number of enrollments.
To earn points, Uber riders do not need to take an Uber to a participating merchant. Rather, the Uber app will register points as soon as a Visa credit card is used, no coupon or code required.
"The low friction part of this is the coolest aspect for me," Quinn said. "We like giving users the choice of how they’re going to get to the shop or a restaurant."
Uber works with other credit card companies, but these deals are focused on taking an Uber. For instance, American Express cardholders earn double AMEX points on Uber rides. Capital One Quicksilver cardholders earn free rides every 10th ride.
The Uber experience becomes more frequent with Visa, says Terry Angelos, Visa's vice president of loyalty offers solutions. Angelos was previously the CEO of TrialPay, an e-commerce payment system Visa acquired in 2015.
Visa cardholders who use Uber in the United States spend $2 billion within three hours of getting out of an Uber.
"Even if you ride Uber every day, you’re probably grabbing lunch or coffee multiple times a day. So, you have these opportunities to have these Uber moments multiple times, more times than a ride," Angelos said.
Integrating local payments and Uber rides made sense given company data, according to Angelos. Visa cardholders who use Uber in the United States spend $2 billion within three hours of getting out of an Uber.
Lyft, Uber's largest competitor in the U.S., recently released its own new rewards program with store purchases in mind. In partnership with Starbucks, Lyft riders can earn free drinks every ride.
Visa has yet to partner with Lyft and pointed to the larger scope of Uber's effort. "Lyft has done it with one partner, but you’re earning Starbucks points, not Lyft points. The way that Uber is doing it is with hundreds of partners with different cities," Angelos said.
Local Offers is first available in San Francisco and Los Angeles. Uber said it plans to introduce the feature elsewhere in the United States later this year.
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Kerry Flynn is a business reporter for Mashable covering the tech industry. She previously reported on social media companies, mobile apps and startups for International Business Times. She has also written for The Huffington Post, Forbes and Money magazine. Kerry studied environmental science and economics at Harvard College, where she led The Harvard Crimson's metro news and design teams and played mellophone in the Band. When not listening to startup pitches, she runs half-marathons, plays with puppies and pretends to like craft beer.
