Uber Brings Back Ride-Sharing Under A Different Banner

Uber Technologies Inc (NYSE: UBER) has decided to reintroduce its ride-sharing feature under a new name, UberX Share.

What Happened: Uber has decided to reintroduce its ride-sharing feature after suspending the option in March 2020 due to the effects of the COVID-19 pandemic.

The company will test its pilot program in Miami and allow a maximum of two riders (along with the driver) on any given trip with masks being mandatory even if passengers have received both of their COVID-19 vaccine shots, according to a report from The Verge.

Passengers using UberX Share would also be offered a 5% discount on their ride with Uber Cash being credited to their accounts if a passenger is picked up during a trip. 

Why It Matters: Uber's primary rival Lyft Inc (NASDAQ: LYFT) reintroduced their rideshare feature in July earlier this year using the same mandate of two passengers per ride and compulsory masks, and is currently active in Chicago, Denver, and Philadelphia.

Both Uber and Lyft have faced significant difficulties during the pandemic with a driver shortage facilitating a 92% price increase since 2018. 

Price Action: Uber shares traded about 1% lower in the pre-market session on Wednesday.