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Uber drops ride discounts for subscribers, switches to cash back

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Uber has garnered a reputation for scaling rapidly with an almost cutthroat acquisition style. But as the company matures and shifts its attention from growth to profits, perhaps bringing on new customers is now a secondary goal. What if this cash back strategy signals that Uber is now pursuing customer quality over quantity?
Generally speaking, discounts lead to higher acquisitions because they provide customers with instant gratification, rather than the delayed gratification of cash back. However, those acquisitions come with a price. Khosrowshahi has said bringing on Uber One subscribers has been initially loss-making because the discounts exceeded the value of their frequency. Over time, though, that membership “creates a significant moat and a significant growth op …

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