How to maximize value from Uber rides
In the last post we talked about whether we could get by with public transportation alone, and Uber was one of the companies that we concluded with as being of great help. Uber is a ride sharing app, the purpose of it initially was that it allowed you to hitch a ride with somebody in their car and pay the driver as well as the organizer (Uber), things have probably changed a little since then but that’s the basis of their idea. In this post we will explain how to best use it if you haven’t yet and ways to really get your maximum value if you haven’t already.
Signing Up
This may sound obvious, but whenever you sign up for an app these days, make sure you get maximum value from the sign up offer. The same applies for credit cards by the way. By signing up for anything, you are sort of guaranteeing that you will in some form provide business in the future. Now I didn’t use Uber in the U.K before I moved, I relied on my car in the suburbs or the London Underground. It wasn’t till I moved to New Jersey with limited public transportation within the smaller towns (town to town is possible as we discussed with NJ Transit) that I realized that you need a car. This is where Uber came in. I was always considering using Uber, but it wasn’t until I got a 20 dollar sign up bonus for use on my first ride that I decided to join the bandwagon. I ended up getting a 20 dollar discount to my ride to Newark airport.
I delayed this usage as long as possible, because I didn’t want to waste it on a short ride (I could ask a friend for a ride or simply walk), and this was the perfect opportunity. Nowadays, Uber has become a big company, so the sign up may not be as lucrative but you should still make sure you utilize that sign up!
Third Party Apps
Certain apps have a financial relationship with Uber which allows them to be able to give you cash every time you get an Uber ride. One such app is Freebird, which is currently offering a promo for $4 cash back into their “rewards fund” for the next 6 rides with them. You have till the 15th November to download the app and input this code. I got this information when I researched Uber from this post on Maximizingmoney.com. This reminds me of a similar app, Ibotta, which is still around but no longer gives you a dollar for every Uber ride that you order through the Ibotta app. This led me to receive a fair amount of cashback which I redeemed in the form of a…you guessed it Uber gift card!
Credit Cards
This will sound obvious but the Uber credit card gives you the best return in terms of cash for payments with Uber. However up until recently, you would only get 3% back, which was the same as Chase Sapphire Reserve (a personal favorite). Now you can expect 5% back which would be the best method to pay for Uber and UberEats. I still think there is room for the Chase Sapphire (Chase points are extremely valuable in the points game) but for people looking for simple cash back, this is a great option. The other option is of course the American Express Platinum which gives you $200 ($15 every month, $35 in December) credit for use annually. Having said that, you should always pay for anything with a credit card to get some return.
Visa Local Offers
Uber has some sort of agreement with Visa which means every time you use a Visa credit card at a particular business, Uber gets a notification and gives you cash. The idea is that Visa wants you to be rewarded for doing business with their partners. Complex I know! For example in my area, Subway seems to have some sort of arrangement. I will get 10% back in the form of Uber credits when I use a Visa credit card which is linked to my Uber account. And since Chase Sapphire is a Visa card, this works out perfectly, as they will reward me with 3x points per dollar as Subway is a dining establishment, and Uber will give me 10% back in credits. That’s called “double dipping” when you get some sort of reward twice for the same purchase. Other offers I have are paying for petrol at BP (pump only), Auntie Anne’s, Pizza Hut (in-store and online), Petco (in-store and online), American Eagle (online) and a few local food establishments particular to the city I live in. Although I don’t recommend going to these places just for this reason, these are useful things to know if for example you need a quick bite, and it’s a choice between Subway and McDonald’s. I once got so lucky that I “tripled dip” by buying some products for a family member at Sephora, and I got cash back through the credit card, Uber credits (8%) and then a separate Chase offer giving me 10% back in the form of statement credit. So keep an eye out for these gems!
Uber Rewards
With Uber Rewards you earn the following points:
- 1 point per dollar on UberPool and UberEats
- 2 points per dollar on UberX
- 3 points per dollar on UberBlack
Uber Rewards are worth 1 cent per point. Every 500 points can be converted to $5 Uber cash credit and placed into your account. It is important to note that the base fare, taxes, and fees earn points but tips do not .
Every 6 months you can earn a select elite status. If you sign up, you have 6 months from that date to earn elite status. Elite status, once earned, is good for the remainder of your elite qualifying period, plus 6 months. The levels are Blue, Gold (500 points), Platinum (2,500 points) and Diamond (7,500 points).
Now if we take a step back and remember the fundamentals to spending money for Penny Pinchers, you really only should pay for convenience in this case. The benefits of Gold, Platinum and Diamond are not really worth it (all of them are explained in the app and none really stand out). However, if you happen to get it because of how much traveling you do generally or in a 6 month period that is fine. The Uber Rewards program is something that can help you with the odd Uber credits here and there, but I wouldn’t rely on it to really maximize your savings with Uber.
Gift Cards and Topping up Balances
Uber does offer the option to refill your credit balance and you can get 5% off if you refill by a $100 let’s say. This helps in a small way again if you know you are going to spend that money regardless. There are also Gift cards that you can get also. Groupon has sold several Uber gift cards which are usually a $25 gift card for the price of $20, as has Walmart too to that sort of deal (I personally missed out on that one!). The other thing is buying gift cards on Amazon with your Discover credit card. Discover in the last quarter of the year always gives 5% back (and 10% in the first year of card usage), which means you could potentially get a gift card for 5% off if you wanted to. Again I can’t stress enough though, this is only worth it if you know you would have spent that money on Uber regardless.
So that’s it for Uber, feel free to comment below for any other penny pinching tips to get full value from Uber.
Happy Monday Penny Pinchers!