🚖 Caber Case Study: Driving ARPU with a Monthly Premium Plan
How a subscription model can fuel loyalty and sustainable revenue growth
🌍 Introduction
Caber, a new entrant in India’s cab aggregation market, has been relying on discount-heavy strategies to capture users. While effective for acquisition, this approach does little for sustained revenue growth.
To solve this, I proposed a monthly premium subscription plan — designed to increase Average Revenue Per User (ARPU) while improving customer retention.
🎯 The Business Problem
Current State: One-off discounts attract users but fail to drive loyalty.
User Pain Points: Riders face unpredictable surge pricing and lack consistent benefits.
Business Need: Increase ARPU and build a predictable revenue stream.
⭐ The Hypothesis
A monthly subscription plan with exclusive benefits can:
Encourage frequent riders to stay loyal
Smoothen price sensitivity through capped surge pricing
Create a predictable revenue stream for Caber
🧩 The Solution: Caber Premium Plan
For ₹299/month, subscribers get:
15% Discount on all rides
Priority Ride Allocation during peak hours
Capped Surge Pricing (max 1.5x)
Partner Offers (restaurants, cafes, entertainment)
Free Ride Support (1 instance/month)
👥 Target Segments
Frequent Riders – 8–10 rides/month (commuters, business travelers).
Price-Sensitive Users – students, young professionals.
Loyalty-Driven Riders – users who prefer consistency and perks.
🛠 Experiment Plan
Alpha Testing – Internal testing of discounts, surge logic, and payment flows.
Beta Rollout (2 Cities) – Pilot in Mumbai & Delhi, with A/B testing to track ARPU impact.
Feedback Loop – In-app surveys + NPS tracking.
Iteration – Adjust pricing and perks based on adoption.
Nationwide Rollout – Scale with marketing campaigns.
📊 Success Metrics
ARPU Growth → +15–20% within 3 months
Subscriber Uptake → 8–10% of active riders in 6 months
Ride Frequency → 30% higher among premium users
Churn Reduction → 10–15% lower for subscribers
Customer Satisfaction → Higher NPS vs. non-subscribers
✅ Conclusion
Caber Premium is more than a discount plan — it’s a loyalty engine. By giving frequent riders predictable value and perks, Caber can reduce churn, increase ARPU, and strengthen its position against larger competitors.
The big lesson: in mobility, loyalty comes not from discounts, but from reliability and added value.