Can Uber Help Reduce Return Anxiety?

Uber has rolled out a new “Return a Package” offering that lets Uber and Uber Eats drivers pick up consumers’ prepaid and sealed return packages — up to five at a time — and drop them off at a local post office, FedEx, or UPS. The cost is $5.

For Uber One members, the fee is $3. Introduced in 2021, the Uber One membership (which costs $9.99 a month or $99.99 annually) includes discounts on rides and orders, $0 delivery fees for eligible orders, and credits for late orders.

Customers can track their package return process in real time in the Uber app. Packages must weigh less than 30 pounds and be under $100 in value.

In its announcement about the new offering, Uber noted that according to the National Retail Federation’s Returns Happen 2022 survey that came out this past February, “79% of shoppers under 30 think mail returns are somewhat or very annoying. And with the busy holiday shopping and gifting season fast approaching, we know returns are inevitable — whether it’s the wrong size, the wrong color, or the wrong gift idea entirely.”

Wendy Lee, director of delivery product management at Uber, told USA Today, “We imagine that this is going to be a huge time saver and convenience play for many, many U.S. consumers.”

The NRF’s survey also showed that over 40% of consumers would rather sit in rush hour traffic than make a mail return. Additionally, about two-thirds of younger shoppers do not have access to a printer for printing return labels all the time.

A survey last year of 2,000 U.S. adults conducted by OnePoll for social shopping platform Slickdeals similarly found that nearly six in 10 (58%) respondents would be willing to do "nearly anything" to avoid returning items.

For 43% of respondents, returning purchases in person is worse than doing so online. The misery of in-person returns included “having the person in front of them escalate the situation (39%), getting managers involved in their returns (32%) and having to travel to the store (32%).” Meanwhile, 29% of respondents think returning items online is more difficult. Slickdeals stated, “The most hated parts of online returns are paying for shipping (42%), having the item lost or not arrive at its destination (39%) and traveling to the post office (37%).”

Among retailers, Amazon stands out for its easy return policies by offering free returns with no box, tape, or label needed, as well as drop-off points inside Staples, Whole Foods, and Kohl’s locations. In April, Amazon began charging a $1.50 fee when some customers drop off product returns at a UPS location instead of a nearby Amazon Fresh, Kohl’s, or Whole Foods.

One newer innovation is curbside returns, offered by Walmart starting in the fall of 2022 and Target this past February. Last fall, Walmart also began offering Walmart+ members the option to have returns picked up for free from their homes. Walmart writes on its Walmart+ page, “No printing, no repacking, no need to leave your home.”