Uber Technologies Inc.
What Happened: On Thursday, Uber unveiled this initiative to promote a lifestyle less dependent on cars. The trial will select up to 175 participants from the U.S. and Canada who will give up their cars for five weeks. Instead, they will rely on alternate modes of transportation such as walking, public transit, cycling, and rideshare.
Uber will offer selected participants $1,000, based on the average monthly cost of vehicle ownership in the U.S., to use alternative transportation options. These options will include public transit, Lime e-bikes, and e-scooters bookable in the Uber app, car rentals, and rideshare.
The company has collaborated with the Behavioural Insights Team, a research consultancy firm specializing in behavioral science, to assess the impacts. Participants will document their experience throughout the trial, noting what transportation alternatives they use and the impact on their everyday experiences.
Why It Matters: Uber's "One Less Car" initiative comes at a time when the company is trying to spread awareness about the reintroduced ridesharing service, UberX Share, after suspending the option during the pandemic.
Uber also launched a shuttle service in May for users to reserve a seat on a local shuttle service and join others heading to the same destination, such as sporting events, concerts, and airports. These services aim to provide affordable transportation options and reduce the number of cars on the road.
However, safety concerns and skepticism about the financial feasibility of autonomous taxis, as expressed by former Uber executive Emil Michael in June, pose challenges to Uber's vision of shared rides and a car-light lifestyle.
Price Action: Uber stock was down 0.14% at $70.75 in premarket trading on Thursday after closing at $70.85 on Wednesday, according to Benzinga Pro.
