Tina Bellon

(Reuters) – Uber Technologies Inc (NYSE:) Tuesday stated that it is resuming share rides. These were cancelled during the pandemic. The company also revealed a new offer intended to lower losses in the pooled ride segment.

Uber announced that the shared ride option allows people to share a vehicle traveling the same way. It was piloted in Miami Tuesday. There are no plans for expansion in the U.S.

UberX Share, formerly Uber Pool (NASDAQ :), offers an upfront discount of 5% compared with regular rides. Uber announced this on its website. UberX Share offers a lower price than Uber Pool, which used to offer rides for half of the cost.

Uber credits are now available to passengers who book a shared ride. They can also get discounts for additional riders who join their ride. If a rider joins, they receive minimum $2 and maximum 30% in Uber credit.

Prior to this, all passengers had to pay a single rate for the entire ride regardless of whether or not they were sharing it. Many passengers could book discounted rides without sharing the ride. Chicago data revealed that 25%-40% of the requested shared rides were not shared prior to the pandemic.

Only a fraction of pre-pandemic rider’s were shared, and Uber stated in the past that its share rides had been losing money due to steep discounts.

Smaller U.S. rival Lyft Inc (NASDAQ) has resumed offering shared rides in July

In order to stop the spread the new coronavirus, the companies suspended the offer in March 2020. They also require both drivers and passengers to wear masks. The companies also restrict shared rides to two passengers, who must sit in the backseat.