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{"id":32643,"date":"2023-05-18T21:52:05","date_gmt":"2023-05-18T21:52:05","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/"},"modified":"2023-05-18T21:52:06","modified_gmt":"2023-05-18T21:52:06","slug":"how-uber-is-trying-to-create-stickiness-for-its-app","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/","title":{"rendered":"How Uber is trying to create \u2018stickiness\u2019 for its app"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/<\/a><\/br>
\nHow Uber is trying to create \u2018stickiness\u2019 for its app<\/br>
\n2023-05-18 21:52:05<\/br><\/p>\n

\n

Ride-hailing is back. But Uber\u2019s looking to become more than a one-stop shop for booking rides.<\/p>\n

Growth \u2014 through products and expanded consumer groups \u2014 was the connecting thread at Uber\u2019s Go-Get event this Wednesday in New York City,\u00a0where the company announced a slew of new additions to its platform that, in many cases, don\u2019t have anything to do with hailing a car, really. Uber launched<\/a> a private chartered boat service<\/a> in Mykonos, Greece, for instance. Uber also rolled out group ordering for Uber Eats and opened its app to teens, a bet on hooking a whole new generation of users.<\/p>\n

The motivators behind those moves aren\u2019t necessarily the same. But they do both point to the perennial pressure on Uber to find ways to acquire new \u2014 and retain old \u2014 users.<\/p>\n

\u201cWe want to be able to be a platform for all mobility needs,\u201d Camiel Irving, the head of rides at Uber, told TechCrunch in an interview.<\/p>\n

She made the point that features geared toward families \u2014 whether foreign boat tours or group ordering \u2014 are a logical step for a company focused on organic growth. Families, after all, control quite a lot of spending across the world, and so it\u2019s sensible to cater to their needs.\u00a0<\/span><\/p>\n

\u201cOur aspiration is for people to be able to go anywhere and get anything,\u201d Irving said.<\/p>\n

That appears to be a winning strategy. In the first quarter, Uber beat analyst expectations as both gross bookings and revenues rose.<\/p>\n

However, as TechCrunch reporter Rebecca Bellan noted<\/a> recently, it\u2019s not clear from Uber\u2019s balance sheet how much the company invests in the myriad products that come out of its Go-Get launches \u2014 nor how successful they are at driving revenue. The updates and new app features probably cost the company a lot less than the many<\/a> moonshots<\/a> it\u2019s since abandoned.<\/span><\/p>\n

On a boat<\/h2>\n

So why boats, I asked Jen You, the head of product for rides at Uber? Uber\u2019s not new to the boat-hailing business \u2014 it operates a fleet of ferries in London on the Thames in partnership with a third party. But the London service is geared mostly toward commuters; Uber\u2019s new Mykonos venture is purely for private bookings.<\/p>\n

Post-pandemic travel trends played a role, You said.<\/p>\n

\u201cOur thought was, since so many travelers are going to Greece this year, why not stand up a product?\u201d she said. \u201cIt\u2019s one of the hottest vacation destinations.\u201d<\/p>\n

She\u2019s not wrong. Greece expects<\/a> more than a million travelers this year, due in large part to more direct flights from the United States.<\/p>\n

It\u2019s a low-risk pilot for Uber, since it\u2019s partnering with local boat operators rather than spearheading its own operation. You characterized it as a way to funnel demand to local businesses \u2014 while making money, of course.<\/p>\n

\u201cWe want to make sure that we\u2019re innovating in the mobility space,\u201d You said, \u201cand being able to switch rides is something that we\u2019re uniquely able to do \u2014 being able to help manage travel experiences across different modalities.\u201d<\/p>\n

Grouping groceries<\/h2>\n

What about group ordering for groceries? Where does that fit into Uber\u2019s broader growth strategy? In prepared remarks at Wednesday\u2019s event, CEO Dara Khosrowshahi characterized the feature as a more \u201celegant,\u201d simpler way to handle one of life\u2019s more predictable chores: restocking the fridge.<\/p>\n

\"Uber<\/p>\n

Image Credits:<\/strong> Kyle Wiggers \/ TechCrunch<\/p>\n<\/div>\n

\u201c[With group ordering, you] don\u2019t have to go through the whole awkward phase of figuring out who owes what or whether you\u2019re gonna get paid back on that,\u201d he said. \u201cWe make it incredibly easy.\u201d<\/p>\n

Ease of use and \u201cstickiness\u201d is important in a business like grocery delivery, which is costly to run and rife with competition. Uber has spent billions of dollars on acquisitions, like that of Careem, Cornershop, Postmates and Drizly, but rival Instacart maintain\u2019s the lion\u2019s share of the market. According<\/a> to Insider Intelligence, it\u2019ll capture 73% of U.S. digital grocery sales in 2023.<\/p>\n

That being said, things are beginning to look up for Uber\u2019s various forays into delivery. Uber\u2019s delivery unit turned profitable for the first time in February 2022, and Insider Intelligence estimates that Uber\u2019s share of digital grocery sales will grow 0.7% next year from 7.2% to 7.9%.<\/p>\n

In addition to (optionally recurring) group ordering, Uber\u2019s introducing nice-to-haves like custom ordering options and suggested replacements \u2014 allowing customers to specify off-menu items and recommend substitutes for out-of-stock products. Competitors like Instacart have offered options along those lines for some time. But Uber\u2019s playing for loyalty \u2014 not expedience.<\/p>\n

\u201cIt\u2019s really important to us for consumers to feel like they can find whatever they want to find,\u201d Irving said. \u201cAt the end of the day, this is just something that that we hope is useful, and helpful, to people who have to use it.\u201d<\/p>\n

Looking to teens<\/h2>\n

Uber is also looking to grow its consumer base by turning to a younger generation.<\/p>\n

At the event, the company launched teen accounts, allowing users aged 13 to 17 to create accounts for ride-hailing and delivery in more than a dozen cities across the U.S. and Canada. Teen users are matched only with \u201chighly rated, experienced\u201d drivers and parents can live track trip progress, Uber says, or contact Uber\u2019s support team on behalf of their teen.<\/p>\n

Back in 2017, Uber tried some early pilots for creating teen accounts. But they weren\u2019t a priority \u2014 perhaps because the company was under less pressure to find new avenues for growth.<\/p>\n

Will teens prove to be a profitable new pool of customers? Time will tell. According to one source<\/a>, though, transportation captures 4.6% of all teen spending \u2014 making it a meaningful, but not outsize, line item.<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:
https:\/\/techcrunch.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/ How Uber is trying to create \u2018stickiness\u2019 for its app 2023-05-18 21:52:05 Ride-hailing is back. But Uber\u2019s looking to become more than a one-stop shop for booking rides. Growth \u2014 through products and expanded consumer groups \u2014 was the connecting thread at Uber\u2019s Go-Get event this Wednesday in New York City,\u00a0where the company announced […]<\/p>\n","protected":false},"author":1,"featured_media":32644,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,17,8],"tags":[],"class_list":["post-32643","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-science","category-tech","category-technology"],"yoast_head":"\nHow Uber is trying to create \u2018stickiness\u2019 for its app - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Uber is trying to create \u2018stickiness\u2019 for its app - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source:https:\/\/techcrunch.com\/2023\/05\/18\/how-uber-is-trying-to-create-stickiness-for-its-app\/ How Uber is trying to create \u2018stickiness\u2019 for its app 2023-05-18 21:52:05 Ride-hailing is back. 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