EconLog Price Theory: The Membership Difference?

Source: EconLog
by Bryan Cutsinger

“Question: Uber offers a membership option that entitles members to a percentage reduction in the price of Uber rides. Evaluate the following two statements: 1 — Suppose an Uber customer is indifferent between becoming an Uber member or paying the standard Uber ride price. This customer will never spend less, and, in general, will spend more on Uber rides if the customer becomes a member. (Assume that Uber rides are a homogenous good.) 2 — Introducing the membership option can never reduce the number of Uber rides this customer takes.” (02/12/25)

https://www.econlib.org/econlog-price-theory-the-membership-difference/