Uber is launching a new financial service, Uber Money
Uber has announced the launch of a new financial service called Uber Money. This includes a digital wallet and upgraded debit and credit cards. The emphasis will be to expand Uber’s efforts and give its 4 million-plus drivers around the world access to a mobile bank account. They will receive payment after each ride. It is possible that one day Uber will offer a bank account to its customers.
Uber unveils a new financial service called Uber Money. For now, it is only available to Uber drivers and Uber Eats delivery drivers in the United States. The aim is to extinguish social discontent and to test a new growth lever. Uber is diversifying, and not necessarily in the way most observers have predicted.
Born2Invest helps investors keep track of this kind of breaking business news on the go. The companion app provides a simple way for readers to access the hottest stories boiled down into 500 characters of less, helping you get informed in less time.
The offer includes a digital portfolio, called Uber Wallet. In practical terms, drivers and couriers will have real-time access to their account transactions integrated into the Uber Driver application. This mobile bank account will allow them to access the amount paid by the customer after each ride. “Employees and savers will now be able to easily track their income and expense history, manage and transfer their money and discover new Uber financial products in one place,” the company continues. Uber Wallet will first be deployed in the Uber Driver application and soon in the Uber and Uber Eats applications.
As for bank cards (debit and withdrawal cards) linked to free Green Dot accounts, they will allow to access discounts on fuel, from 3% and up to 6% for Uber Pro drivers. Uber Credit Card, launched in partnership with Barclays in 2017, has been redesigned and will allow its holders to receive 5% of their expenses in Uber Cash on the Uber, Uber Rides, Uber Eats and Jump applications. Another feature is a $100 free overdraft authorization for drivers and couriers.
Building driver and customer loyalty
A portfolio of services, that at first sight seems to be intended to extinguish the grumbling of the approximately 4 million “employees” who regularly complain about their working conditions and the precariousness of their situation, is the subject of debate in the United States and Europe. The objective is to meet the expectations of this community but also to attract the approximately 100 million active monthly users at a time when competition is fierce, by pushing promotional offers to encourage them to use these means of payment. Uber Money aims to enrich new functionalities and to expand to new countries, according to the US company.
Uber is seeking to diversify its revenues, in a context of financial difficulties that are not likely to reassure the investors. The long-standing player in the transport of private individuals on demand posted record losses of $5.24 billion last August. In any case, Uber is another technological player to invest in this sector where Google, Apple, and Facebook have tried their luck with more or less success.
These payment innovations highlight the reality that many are struggling to make ends meet. Another popular feature, no-cost $100 overdrafts, helps cash-strapped drivers pay for gas to kick off a working day. It is a better alternative than high-interest payday loans.
Uber’s ambitions could bring drivers into the realm of digital finance in parts of the world where cash is still the king. About 40% of all Uber trips globally are paid using paper currency.
Tech is coming
Uber’s move is the latest sign that tech giants are looking to enter the finance sector. Apple recently launched a credit card with Goldman Sachs, and Amazon has been offering small business loans to its merchants for years. Facebook unveiled an ambitious plan this year to help remake global finance with its libra cryptocurrency, although that effort lost momentum after some corporate partners abandoned the project.
Uber recently surveyed U.S. drivers about whether they’d be interested in taking small loans from the company.
(Featured image by freestocks.org via Pexels)
First published in L’USINEDIGITALE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
[Week 23] The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing
This week we're bringing you top-secret CIA know-how on hacking people's minds and bending them to your will. And if...
Large Traditional Banks Manage 75% of Spanish People’s Investments in Funds
There are three main reasons why Spaniards prefer traditional banks to manage their investments. The first of these is due...
Atomic Wallet Hack: Stolen Cryptocurrencies End Up at North Korea-Linked Coin Mixer
As the aftermath of the Atomic Wallet hack unfolds, it highlights the ongoing challenges associated with securing crypto assets and...
Italian Parliament Will Work on Regulating the DLT Market
The integration of DLTs into corporate law starting with the representation of financial products and instruments in digital form is...
Ibions Seeks Investors and Anticipates Revenue of €1.5 Million in 3 Years
The objective of this first round of investment is to complete the development of the platform through which the company...
Africa1 week ago
Green Hydrogen: How Can Morocco Meet 4 to 8% of Global Demand?
Featured17 hours ago
Italian Parliament Will Work on Regulating the DLT Market
Africa2 weeks ago
Cape Verde PM Asks Banks to Change Perception of Financing in Agriculture and Fisheries
Cannabis5 days ago
The First Application to Grow Medical Cannabis Was Received in Poland