Uber Rewards is eliminating a key redemption option
Editor's note: This story was updated to include a statement from Uber.
Back in 2018, Uber began rolling out it its loyalty program Uber Rewards. It was initially only available to select people in certain cities but has since expanded nationwide. Soon, it will see its first major devaluation.
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Background
Much like airline and hotel loyalty programs, there are two main aspects to the Uber Rewards: the ability to earns rewards and the ability to earn elite status. The earning rates are fairly simple:
- 1 point per eligible dollar spent on UberPool and UberEats
- 2 points per eligible dollar spent on UberX, Uber XL, Select and WAV
- 3 points per eligible dollar spent on UberBlack, Black SUV and Lux
Initially, points were worth a flat 1 cent apiece toward Uber Cash credit — for every 500 points earned, you'd get a $5 Uber Cash credit. This credit could be redeemed toward future Uber rides and UberEats orders. Then in December, Uber began introducing new reward options, like discounts on rides, access to highly rated drivers, and meal donations through Feeding America, slightly adjusting the value you could get.
What's changed
Unfortunately, the $5 Uber Cash reward option will be going away soon. In an email to members, Uber shared that they will no longer see the option after this current rewards cycle. Some of the discounts are capped at $7, making them arguably more valuable than the credit option. But they require you to spend more in the first place to maximize them so the credit option still often made more sense.
Related: New Uber Rewards options
Bottom line
Losing the Uber Cash option is disappointing, but it makes sense given the company's struggling financial position due to the significant drop in demand for rides caused by the coronavirus pandemic. Uber will continue to add new reward options like promotions on rides and eats, unique experiences and exclusive partner offers to keep the program experience exciting. The program has previously partnered with P.F. Chang's to offer free dumplings as a reward option, so it's likely we'll see more partnerships like that in the future.
While the Uber Rewards program might be getting a bit less valuable for some members, there are still ways to save on your rides and eats orders. Check out our guide to the best cards for Uber and Lyft before booking your next ride-share trip to learn how you can maximize your return.
Note: After this article was originally published, an Uber spokesperson reached out to TPG to clarify that this decision was not tied to the company's financial position and provided the following statement: "After thoughtful consideration, we made the decision to sunset the $5 Uber Cash benefit in the U.S. starting in late 2019. Users told us that Uber Cash was a less popular option for every 500 points earned and that they wanted more choice, which is why we expanded to include ride and Eats discounts, partner benefits like access to Apple News, free food items, and a large focus on donations per these challenging times. We remain committed to Uber Rewards and recognizing riders for choosing our service."
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Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
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Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
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- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
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- No Foreign Transaction Fees.
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