Uber's new service to charge customers monthly for rides

A new Uber service will allow passengers to pay monthly in exchange for discounts. [Photo: Courtesy]

Uber has introduced a new option for customers in some US cities - a monthly fee. Uber's Ride Pass has a number of interesting options, but customers have to pay USD14.99 per month to access them.

Passengers in Los Angeles, Austin, Orlando, Denver, and Miami will have the option to pay each month for discounts on rides. Uber says this will save riders 15 per cent on their monthly spend with the firm.

Of course it will benefit people who use the service multiple times a week, rather than those who missed the last train after staying in the pub for "just one more".

The big advantage is that the subscription fee also exempts the customer from surge pricing which usually comes into effect with external conditions.

For example, if it's raining then Uber obviously gets busier and that's when you'll see a surge multiplier appear in the app.

Likewise, late journeys often attract a surge to entice drivers to jump in their cars and start working.

The Uber app keeps track of how much you've saved in a given month, so you'll also get to make a call on how worthwhile it is for you.

In LA the monthly fee is slightly higher, set at USD24.99 but that includes access to the company's bikes and electric scooters.

Uber is pitching this whole idea at those who want to replace their car with more regular Uber use. In cities, when congestion charging, parking fees and general stress are taken into account this might make sense for some people.

Drivers, the company says, won't see a change in what they earn. This means that Uber is bearing the cost, something that irritates London's cabbies no end.