Uber Technologies, Inc UBER is expanding its service offerings, stepping into the realm of package return.
The ride-hailing and food delivery giant announced a new feature that enables customers to return packages through mail carriers directly via the Uber and Uber Eats apps, marking the company's foray into a domain traditionally reserved for courier services.
The move reflects the ride-hailing giant's desire to create stickiness in the app by cross-selling products and services akin to Amazon.Com Inc's AMZN strategy.
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The new "return a package" feature is designed for convenience, allowing users to send back up to five packages simultaneously for a flat fee. The service is $5, but Uber One members can avail it for $3.
This feature extends beyond a specific carrier; drivers will collect the packages and ensure they reach United Parcel Service, Inc UPS, FedEx Corp FDX, or USPS for further processing, CNBC reports.
The package return service is available in several major metropolitan areas across the U.S.
It complements the existing Uber Connect program, introduced in 2020, which facilitates same-day local package deliveries. However, there are stipulations to using the service. Packages need to be prepaid, sealed, and ready for shipment.
They should also weigh under 30 pounds and be worth under $100. Certain items, including money, gift cards, and fragile objects, are prohibited.
DoorDash, Inc DASH launched its branded Package Pickup product in January. The services from Uber and DoorDash cost the same.
Uber's app provides live tracking, ensuring users can monitor their package's journey in real time.
Upon completion of the delivery, a photo of the receipt is included in the tracking information to confirm the process. Standard tipping options are available for the drivers handling the package deliveries, adding a personal touch to the service.
Price Actions: UBER shares traded higher by 0.46% at $44.72 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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