How It Works And What It Costs

Topline

Beginning Wednesday, users can call Ubers to return their unwanted packages for a flat fee, the company announced—the latest addition to the ride-share app’s offerings.

Key Facts

For a $5 flat fee—or $3 for Uber One members—users can order an Uber driver to pick up as many as five prepaid and sealed packages that they’ll take to a post office, UPS store or FedEx store.

Users are able to track their packages in real-time on the app, and a photo of the package dropped off or receipt will be sent to them after the drop-off is done, the company said.

The new service is available in almost 5,000 cities starting Wednesday, including Atlanta, Boston, Denver, Los Angeles, San Francisco and Washington, D.C.

Big Number

79%. That’s how many shoppers under 30 thought mail returns were “somewhat or very annoying” in 2022, according to research from the National Retail Federation.

Key Background

The new program expands on Uber’s Uber Connect offering, which launched in 2020 and allowed people to send things like care packages and gifts across town same-day without postage. Adding package returns to Uber’s systems presents a big opportunity for the company, especially heading into the holiday season when returns have historically increased and as online shopping and returns are becoming the norm. In 2022, Insider reported U.S. consumers sent back about $279 billion worth of merchandise, or almost 27% of what consumers were expected to spend that year. Part of the reason experts say returns have become so common is because of online shopping and the trend of “bracketing,” which is when one orders multiple versions or sizes of something with the intent to return some of them. The National Retail Federation estimated that 43% of shoppers bracketed last year, and about 12% bracket everytime they shop. Inflation is also causing consumers to return more things, NRF reported, and 87% of consumers said free returns are important when they’re considering where to purchase from.

Further Reading

NBC NewsUber is now offering to return packages to USPS, UPS, or FedEx for $5
AP NewsGot returns? Call Uber. The ride-hailing service is now offering to return parcels for a fee

Source: https://www.forbes.com/sites/mollybohannon/2023/10/04/uber-can-now-return-your-packages-how-it-works-and-what-it-costs/