Dive Brief:

• Uber Eats is reportedly planning to add a subscription service for consumers called Uber Eats Pass that waives individual delivery fees for a $9.99 monthly fee, according to TechCrunch, which was tipped off by a reverse engineer specialist who noticed the hidden coding in Uber's Android app.
• An Uber spokesperson didn't deny TechCrunch's claim and told the publication, "We're always thinking about new ways to enhance the Eats experience."
• While no additional details were available, TechCrunch said the rollout of this program could be imminent.

Dive Insight:

Since Uber became public, it's been under a lot of pressure to make a profit, especially since its stock market debut fell short of expectations. Uber will need to lean on Uber Eats since its food delivery service has been growing while ridesharing has been slowing, according to Bloomberg.

A subscription service could help create a more loyal following and boost its usage. Uber already offers Ride Passes and combining these two programs could create a more loyal Uber following among existing rideshare regulars and more incentive to use its food delivery over a competitor's, according to TechCrunch.

Uber Eats has also been trying to revamp its service, adding additional features to its app such as order tracking. It also plans to roll out click-and-collect service in London this year and is piloting airport delivery in Toronto. 

Eats Pass will likely look similar to what other third-party delivery providers offer. Postmates Unlimited, which launched in 2016, has been growing 300% and one in three orders made on Postmates is from a member, according to the company. It also lowered its minimum order amount from $20 to $15 last year, a few months after DoorDash rolled out its monthly subscription service Dash Pash that has a minimum order of $15.

Food delivery subscriptions are expected to be the future of food delivery, especially since they make the service more cost effective. It could also increase delivery orders at restaurants, at least those that participate in the model, and help drive more sales. Individual restaurants and small chains have also been trying subscription services as a way to boost their loyal customer bases.

With Uber Eats turning toward this model, Grubhub is the largest remaining delivery giant yet to do so, and it will be interesting to see if Grubhub adds the service to stay competitive or rely on its extensive restaurant network instead.