Uber, the renowned global ride-sharing and food delivery platform, recently introduced a new feature called Uber One in Sri Lanka. This marks the first launch of Uber One in the Asian region, highlighting the significance of the Sri Lankan market for Uber. The Uber One feature offers a subscription service that provides exclusive perks, elevated support, and enhanced experiences to loyal customers of both Uber Rides and Uber Eats.
In a recent interview with The Sunday Morning Business, Uber Rides Sri Lanka Country Manager Thanushika Sivanathan and Uber Eats Sri Lanka General Manager Varun Wijewardane, along with Head of Policy and Safety Communications for India and South Asia Aakash Aggarwal shared insights about the Uber One feature and its impact on the Sri Lankan market.
Can you provide a brief explanation of the Uber One feature and why you decided to introduce it?
Thanushika: From a global business perspective, Uber represents a top-quality brand that brings together businesses that add value to our customers. Launching Uber One in Sri Lanka allows us to offer a strong value proposition to our customers. Specifically for Uber Eats, the benefits include free delivery for restaurant orders over Rs. 900 and grocery orders over Rs. 1,200. Additionally, we offer exclusive promotions and offers for Uber One members.
We provide elevated support and aim to grow the membership base and share the value across the platform. In terms of rides, Uber One consumers receive 5% credits on every ride, which can be used for future trips or Uber Eats orders. We also prioritise top-rated drivers for Uber One members when they request a ride. This subscription service is aimed at unlocking more elevated experiences for our loyal consumers in Sri Lanka.
Is Uber One available in other countries or regions?
Varun: Yes, Uber One is available in several countries, including the US, Mexico, Chile, Australia, New Zealand, and Japan. However, Sri Lanka is the first country in the South Asian region to launch this feature.
Why did you choose Sri Lanka as the first market in the Asian region to introduce Uber One?
Thanushika: Sri Lanka has been a strong market for Uber and Uber Eats for the past seven years. We have observed a significant number of Sri Lankans relying on our services and we have a large base of loyal consumers. By providing this subscription service, we aim to offer enhanced experiences to our customers who already use both platforms. Our philosophy has always been to bring the best of Uber to Sri Lanka and Uber One is an extension of that commitment.
Are there plans to introduce a similar feature in other Asian countries?
Varun: While I can’t provide specific details at the moment, we do have plans to roll out Uber One in as many countries as Uber operates over time.
How does Uber One differentiate itself from competitors?
Varun: Our focus is on the features and value proposition of our product. We believe in creating value and providing exclusive perks for our customers. Rather than engaging in feature-by-feature comparisons, we are confident in the solid product we have developed. Uber One is designed to be successful and provide significant value to our loyal customer base.
How does Uber benefit from introducing Uber One, considering it may impact profitability?
Aakash: Our investment in Uber One is part of our growth strategy in Sri Lanka. We consider the success of our customers, merchants, and delivery partners as our own success. By offering Uber One, we are confident that we are creating value for all stakeholders. Although there may be some impact on profitability, we anticipate that the increased volumes resulting from the programme will offset any potential reduction.
Is there anything else you would like to add about Uber One?
Aakash: In addition to the standard Uber credits and unlimited free delivery, Uber One members will also receive exclusive perks on a monthly basis. These perks will change regularly, providing exciting offerings to our members. It’s important to understand that Uber One is built on three pillars: increasing everyday savings, offering exclusive perks, and providing priority support. We strive to enhance the overall value and experience for our customers.
Are you planning to introduce any Sri Lanka-specific features? Like, for example, the tuk tuk, which is a unique experience in Sri Lanka?
Thanushika: Yes, we have been considering Sri Lanka-specific features and have focused on building locally. Initially, our service only included cars, but we introduced Uber Tuks to cater to the local preference for tuk tuk rides. We recognised that approximately 90% of Sri Lankan consumers rely on tuk tuks for transportation.
Additionally, affordability is a significant factor for Sri Lankans, so we launched Uber Moto, which provides two-wheeler options. This segment has gained popularity, especially after the economic crisis. The introduction of Uber Moto was unique to Sri Lanka and we will continue to bring in products that cater to the specific needs and preferences of Sri Lankans.
How quickly does Uber reflect fuel price fluctuations in its prices?
Thanushika: Over the past year, we have faced challenges due to fluctuating fuel prices. However, we strive to balance the needs of both our driver partners and riders. We have been quick to react to any changes, ensuring that we compensate our driver partners for high fuel prices while maintaining affordability for riders. We have made relevant changes over time and have invested in the market to manage significant price changes.
Varun: Our goal is to continue working on this aspect and explore alternative ways to offset fluctuations. For instance, during the fuel crisis, we increased our investment in earnings and introduced two-wheel bicycles for deliveries, providing additional options to adapt to changing circumstances. We believe in maintaining a balance between our delivery partners, consumers, and merchants to ensure a positive experience for everyone involved.
Will Uber continue bicycle deliveries even after the fuel issues are resolved?
Varun: Absolutely. Bicycle deliveries have been a valuable addition to our services and we plan to continue with them. We launched electric bicycles earlier this year, which not only offer opportunities for longer trips and earnings but also align with sustainability goals. By expanding our fleet to include bicycles and two-wheelers, we empower more people to join us on the platform and improve first and last-mile connectivity.
Thanushika: Our commitment to bicycle deliveries extends beyond temporary solutions during crises. As seen in Uber Eats’ global ‘Future of Delivery’ report, micro-mobility and cycle deliveries are integral to our long-term vision. Therefore, we will maintain and expand our bicycle and electric vehicle offerings in Sri Lanka.
How does Uber address the safety concern regarding mismatched registration numbers and vehicles during tuk tuk rides?
Thanushika: We acknowledge the safety concerns related to mismatched registration numbers and vehicles. We have implemented safety measures to address this issue. Once a driver completes one or two trips, our system can identify any discrepancies and take appropriate action, including removing drivers from the platform or issuing warnings. We actively encourage feedback from consumers and if they report a mismatch between the vehicle plate shown in the app and the one that arrives, we take immediate action regarding that licence plate.
Additionally, we are continuously working on implementing features that proactively identify and prevent such incidents. While this issue may have recently escalated, we are committed to taking necessary actions to ensure the safety of our users.
How does Uber handle the cash versus card payment issue, and what actions are taken to address it?
Thanushika: The cash versus card payment issue is not unique to Uber but prevalent in the ride-sharing industry as a whole. However, we have taken steps to mitigate this challenge in Sri Lanka, which is a predominantly cash-heavy market.
We introduced daily payments, allowing drivers and delivery partners to cash out their earnings at any time of the day. This system ensures that partners receive their payments on the following day, making the cash versus card issue irrelevant. While we understand that some drivers may still prefer cash trips, we actively educate our partners and take action against those who consistently decline card payments.
Varun: It is an ongoing process and we are dedicated to improving the situation, backed by data that indicates a decreasing number of people requesting cash payments. This effort extends beyond ride-sharing to other sectors like food apps, where a similar shift is required.
Any final comments or additional information you would like to provide?
Aakash: We would like to emphasise that these issues are being addressed and treated as separate concerns. Regarding cash versus card payments, our introduction of daily payments has significantly improved the situation, ensuring timely payments for our partners. We are determined to transform the market and bring about a behavioural shift by encouraging more partners to accept digital payments.
Thanushika: This problem is not limited to Uber alone, as other ride-sharing and food delivery platforms also share this. We continuously educate our drivers and expect further positive changes in the future. Our commitment to safety remains a priority, and we actively monitor and take action against drivers who violate our policies.
We value feedback from our users and it helps us to identify and address any safety-related issues promptly. We are also committed to enhancing our services by incorporating local features and expanding our offerings to provide a unique and tailored experience for Sri Lankans.