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Uber Brings Back Carpooling Due to High Rates

According to executives on a conference call with investors, Uber is planning to relaunch its carpooling service as a strategy to offset rising prices. In reaction to the COVID-19 pandemic,Pool was shut down in March 2020, and it stayed closed even after vaccines became widely accessible, and people returned to the app. However, according to CEO Dara Khosrowshahi, who hinted at a new shared rides product being released soon, this could quickly change.

Like its competitor Lyft, Uber has been battling to recover from the pandemic, as drivers have left the site, wait times have climbed, and ride prices have risen.pricing is up 20% year over year, slightly lower than they were throughout the summer but still high compared to pre-pandemic levels. Khosrowshahi believes that introducing a low-cost carpooling service will help ease demand for primary ride-hailing products and, in turn, lower pricing.

One of the cheapest alternatives on Uber platform was Pool, which pairs up to three riders in one car based on their destinations. On the other hand, Drivers despised it, citing low customer ratings, an inefficient algorithm, and meandering directions that irritate riders despite the standard fare. COVID-19 outlawed the practice of strangers sharing a car’s backseat. To restrict the spread of the virus, cities such as New York have banned shared rides.

Lyft’s Lyft Line carpooling service was also halted. When Uber Pool returns, it may not appear the same as it did before the outbreak. Khosrowshahi suggested that it be more like an employee shuttle service based on Uber matching technology, which the business could sell to its corporate clients. According to a spokesman, the staff shuttle is a “different endeavour” from the carpooling service, who declined to elaborate.

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