- Uber has entered the financial services industry with Uber Money.
- The new service helps drivers and couriers get their earnings after each ride.
- Uber Money is likely to drive loyalty of customers while making it difficult for drivers to quit.
Tech titans are muscling their way into the financial services industry. Facebook has recently grabbed headlines with its efforts to reshape global finance through Libra. However, the project lost steam after corporate partners bowed down to political pressure. Now, Uber (NYSE:UBER) unveils its plans to launch Uber Money.
On the surface, it appears that the ridesharing company wants to help its cash-strapped drivers to instantly access their earnings. The service will provide its over four million drivers and couriers a mobile bank account that enables them to get paid after every ride. The service will come in the form of a digital wallet and enhanced debit and credit cards.
With Uber Money, drivers and couriers will no longer have to wait for weekly payouts or use Instant Pay to access their earnings. On top of that, Uber Wallet users will be able to monitor their earnings and expenses, plus manage and transfer their money if they wish. There are also other features that sound attractive to the company’s partners, such as:
- Cash back on gas between 3% and 6% depending on Uber tier.
- No-cost $100 overdrafts.
- Partnership with BlackRock to help drivers and couriers save and invest their money.
Some of the benefits touted by Uber Money. | Source: Twitter
While all of of this sound good, a company that lost over 20% of its value post initial public offering is not expanding its services out of the goodness of its heart.