Uber is setting up a new division called Uber Money to cope with its growing financial services. The group supervises everything from the range of credit and debit cards to digital portfolios for drivers and products used by drivers to be paid on time.
To begin with, Uber drivers have an improved way to get the money they earn from journeys directly, the company says. Drivers usually wait for weekly payments or cash in using a feature called Instant Pay.
Now drivers and other freelance employees such as Uber Eats couriers have "real-time access to their earnings after each trip via the Uber Debit account," the company says. This mobile bank account means that more than 4 million Uber drivers and couriers can get their money right after every trip or delivery.
Directors in the US (and other countries shortly thereafter) can sign up for a free debit card linked to a Green Dot account, a financial technology and bank holding company with headquarters in Pasadena, California. Uber also offers drivers who sign up for the debit card money back on gas from 3 percent and up to 6 percent for the highest level of Uber Pro drivers.
The digital wallet, which Uber says, allows administrators to "easily follow their income and spending history, manage and move their money and discover new Uber financial products in one place", will in the coming period Uber driver app will be rolled out for weeks.
The company is also launching its brand credit card, which was first introduced almost two years ago. To get customers to sign up, Uber offers more rewards, including 5 percent back in "Uber Cash" of spending on the Uber platform, including Uber Rides, Uber Eats and Jump bikes and scooters. Card holders are also rewarded for receiving an Uber Copter from Manhattan to JFK Airport.
Uber offering financial services is not new – the company has implemented an interest-free advance program for drivers in California and Michigan in 2016. It also currently offers one Uber Cash digital wallet for riders, and helps lease cars to drivers partnerships with third parties.
The news about Uber Money, however, will certainly cause concern among the critics of the company. There are many Uber drivers & # 39; s in debt and struggling to make ends meet. Financial hardships were a driving motivator for workers' groups in California and legislators who adopted AB5, the law that will make it very difficult for Uber to classify his drivers as independent contractors.
Uber is also simply the newest technology company that shows an interest in financial services. Apple has recently issued a credit card in partnership with Goldman Sachs, and Facebook has unveiled its plans to renew global financing with its Libra cryptocurrency – an effort that is increasingly losing momentum.