Uber challenge offers $1,000 to ditch car for a month
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Uber will pay 175 people in seven U.S. and Canadian cities $1,000 to ditch their cars for a month and use alternate transportation in its "One Less Car trial."
Why it matters: Americans are grappling with high car expenses including vehicle prices, rising car insurance and surging car repair costs.
- The average monthly cost of vehicle ownership in the U.S. is more than $1,000, according to AAA.
Driving the news: Car owners in Chicago, Washington, D.C., Miami, San Francisco, Los Angeles, Toronto and Vancouver can apply online to be a part of the trial, Uber announced June 27.
- Uber says the five-week trial will run from July 22 to August 25 and is to "help reduce personal car ownership" and switch to "a car-light lifestyle."
Zoom in: Alternative transportation options for the trial include Uber rides, walking, taking public transit, Lime e-bikes and e-scooters and car rentals.
- "This trial is really all about investigating what works," Adam Gromis, Uber's global head of sustainability policy, told Axios. "How can we create the possibility of less car use, of car shedding, of the opportunity to travel with more options for getting from A to B."
How it works: To be eligible for the trial, applicants need to be 18 or older, have a driver's license, a vehicle they use more than three times per week, a bank card and "be comfortable documenting their experience."
- Applications, which are a 34-question survey, are being accepted through July 7.
By the numbers: Uber says the $1,000 payment for participants will be broken into parts and comes with a free one-month Uber One membership:
- $500 in Uber Cash redeemable on Uber Rides and Lime e-bikes and e-scooters, booked in the Uber app.
- $200 voucher for car rental or carshare.
- $300 across other transportation modes, such as public transit.
Flashback: Uber did a similar trial in Australia in 2023 with 58 participants, Gromis said, noting they replaced the majority of car trips with alternative transportation.
- "We were really struck to see car use reduced substantially by more than half," Gromis said. "Walking was the most preferred mode" and increased 75%.
Between the lines: Gromis said this is Uber's first U.S. trial asking people to give up their cars.
- But it is similar to one competitor Lyft had in 2018 called the "Ditch Your Car Challenge."
- The Lyft program offered a stipend to be used on alternative transportation.
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