Uber has discontinued the 5 percent discounts on eligible rides that it previously provided to Uber One subscribers.

According to an email sent out to customers, beginning with the next billing cycle, subscribers will earn 6 percent ‘Uber Cash’ on eligible rides, which they will be able to spend on Uber and Uber Eats, reports TechCrunch.

Since the company launched Uber One in 2021 for $9.99 per month and $99.99 per year, discounts on rides have been a major adoption driver.

According to Uber’s full-year earnings report, Uber One memberships increased by 100 percent to approximately 12 million members in 2022.

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While switching to a cashback offer allows Uber to increase its profit margins, it also risks losing customers who are only interested in the discounts, the report said.

Moreover, the ride-hailing platform stated in the email that other member benefits such as the $0 delivery fee and up to 10 percent off eligible Uber Eats orders will not be affected, the report added.

Meanwhile, Uber has announced a new feature, which will allow users to book flights directly in the app for customers in the UK.

Uber partnered with Canada-based travel agency Hopper to sell national and international flights through the ride-sharing app.

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