In a creative marketing ploy, rideshare giant Uber plans to pay dozens of people across North America to forgo their car for five weeks and take alternate transportation.
Rideshare giant Uber Inc. is paying U.S. car owners to temporarily forgo the use of their vehicles.
During Uber's One Less Car trial, up to 175 selected participants in North America will give up their personal car, and receive a $1,000 stipend to use on alternate forms of transportation for five weeks.
This includes things such as rideshare, public transit, e-bikes and e-scooters and even car rentals.
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It's part of the companies' mission to reduce carbon emissions. While the company has pledged to be a fully electric, zero-emission platform globally by 2040, "we understand that to keep global warming below 1.5 degrees, it’s not just how our vehicles are powered that needs to be addressed," the company said in a November 2023 report following its first trial in Australia.
During that trial, 58 Australians gave up their cars for four weeks and relied the most on walking, cycling and rideshare. Cycling and rideshare usage, in particular, increased by four to five times.
However, this trial is also one way the company can seemingly boost usage of its service in an era when car ownership has increasingly become more burdensome.
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According to a recent AAA report, the average annual cost of owning a car in 2023 "increased significantly," reaching over $12,000. The increase was driven by record new vehicle prices and a 90% increase in finance rates, which is the amount paid in interest on the loan used to purchase a vehicle.
That's a sharp jump from 2022 when the average yearly cost to own a car sat at $10,728, or $894 monthly.
The average starting cost to buy a new car in 2023 jumped 4.7% from the prior year to $34,876, which in turn drove up the finance costs, according to AAA data. The vehicles in 2023 boasted an average annual finance charge of $1,253, according to AAA.
Uber will select 30 people from Los Angeles, Chicago, Washington D.C., Miami, San Francisco, Toronto, and Vancouver.
The program will run from July 22 to August 25.
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Eligible participants have to be at least 18 years old, have a driver's license, a car they use at least three times per week and have a bank card. If selected, they will also be required to document their typical mobility behavior, according to the company.
The stipend will be broken down as follows:
