Uber (NYSE:UBER) announced on Thursday that it will give $1,000 in credits to select U.S. and Canadian commuters who ditch their cars for five weeks as a part of its “One Less Car” initiative. The ride-hailing and food delivery platform operator plans to boost business and reduce emissions with this initiative.
Uber’s “One Less Car” Initiative
The five-week program is expected to start on July 22. As a part of this initiative, Uber will select 175 car owners in Los Angeles, Chicago, Washington D.C., Miami, San Francisco, Toronto, and Vancouver, based on certain eligibility.
Furthermore, with this program, car owners will get $500 in credit that can be redeemed on the Uber app. They will also receive a $200 voucher for car rental or carshare services. Additionally, car owners will get $300 for using alternate modes of transport such as public transport.
Uber has been promoting the use of environmentally friendly vehicles for a long time. The company has committed $800 million to assist drivers in transitioning to electric vehicles (EVs) by 2040. Additionally, Uber has partnered with Hertz (NASDAQ:HTZ) to provide Tesla (NASDAQ:TSLA) cars as a rental option for its drivers in the U.S. and Europe.
Boosting Uber’s Revenue
This initiative could boost Uber’s revenue. By encouraging people to use ride-hailing instead of their cars, Uber can increase its platform usage, which means more rides and higher revenue. Offering credits and vouchers will attract new users and keep existing ones, building customer loyalty.
Partnering with Hertz to provide Tesla cars will also appeal to eco-conscious riders, enhancing Uber’s brand and expanding its customer base. Plus, supporting the switch to EVs aligns with global sustainability trends, making Uber look good to investors and potentially raising its stock value.
Is UBER a Buy or Sell Right Now?
Analysts remain bullish about Uber stock, with a Strong Buy consensus rating based on 30 Buys and one Hold. Over the past year, Uber has surged by more than 60%, and the average UBER price target of $87.87 implies an upside potential of 24% from current levels.
