Uber launches new subscription service across five US cities

Ride-hailing app Uber has rolled out a new subscription scheme across five US cities.

Based on subscriptions, the new ride pass will allow members to avoid surge pricing, when fees peak at rush hour and at other times when demand is high.

The lowest monthly subscription comes in at $14.99 (£11.55) in Austin, Denver, Miami and Orlando, while a subscription in Los Angeles costs $24.99 a month.

Uber said the ride pass is an "affordable" and "reliable alternative to driving yourself". 

Chief executive Dara Khosrowshahi has said he wants the company to be visible across all modes of transport. As well as offering regular taxis, Uber also recently acquired Jump bikes and runs a car pool service.

Users of the app will be able to track their savings on ever ride, auto-renew their pass and cancel their pass at any time.

The new scheme comes as Uber is facing competition from rivals in the market such as Lyft, which is planning an Initial Public Offering (IPO) to rival Uber's $120bn (£90.8bn) scheduled float in 2019.