The new way of conveying was brought in by Uber and that makes it the mammoth of transporting passengers from one place to another and that too at an affordable cost. And when we talk about cost-minimization, the facility of ‘Uber pool’ comes into our mind through which Uber is giving stiff competition to its fellow businesses.
Uber started its Pool venture to provide service that allows drivers to pick up multiple riders along a defined route. Pool became priority for the company and a vital step closer to what CEO Travis Kalanick often calls the “perpetual trip.” In the year 2014, Pool was initiated but the feature wasn’t an instant hit. Only 7.9 percent of ride initiators matched with an additional rider, these riders were called as “minion.”
The perpetual trip is Uber efficiency as riders are always opting for transportation and drivers are always on the move for acquiring more passengers. But this idea didn’t work in 2014 and 2015. Uber started pouring money into Pool in such a way that it started subsidizing the cost of the shared rides to accelerate its interest. By the end of January, almost 42,000 riders used Pool and nearly 25 percent of those were matched with an additional rider. Again, the company introduced $5 flat fares to Pool and interest went up twice and 44 percent of the 125,000 Pool riders were matched with a minion.
By June 2015, the subsidies for its San Francisco Pool project totaled up to $6 million per month; $1 million per week in one city itself. It would be right to say that, Pool may have leveled out more in recent period. In May 2016, Uber’s then strategy head David Plouffe told that it was Pool that accounted for 20 percent of its ride globally.