In a latest development, global ride-hailing company Uber is making a deeper push into the financial services as well. The company on Monday announced the creation of a new division called Uber Money, in a bid to support both Uber riders and drivers. It is to be noted that Peter Hazlehurst will head the new division.
All new Uber Wallet!
Uber Money offers drivers a digital wallet, debit and credit cards, and 5% cashback on other Uber services. With the digital wallet, drivers will now be able to easily track their earning and spending history, manage and move their money. The Uber Wallet will be rolled out to the Uber Driver app in the upcoming weeks and will be available later in the Uber and Uber Eats apps.
Improved way to access money!
With the Uber Money platform, the drivers will have real-time access to their earnings after every trip through the Uber Debit account. In general, drivers either have to wait for a week or cash out through the Instant Pay feature.
3% to 6% cashback on gas!
Drivers in the US can sign up for no-fee Uber Debit Account, powered by Green Dot, to integrate seamlessly into the Uber Driver app. It’s worth mentioning that it is expanding to other countries soon. Using the debit card, drivers can avail cashback on gas starting at 3% and up to 6% for the highest tier of Uber Pro drivers.
Relaunching credit cards with rewards!
Furthermore, the ride-hailing app is relaunching its Uber Credit Card in partnership with Barclays. In an attempt to lure more customers, the taxi company is offering rewards, including 5% back in “Uber Cash” from spending across the Uber platform – Uber Eats, Uber Rides, and Jump bikes and scooters. Cardholders will also get rewarded for hailing an Uber Copter from Manhattan to JFK Airport.
Big tech into finance!
Over the last few years, we’ve seen big tech marching into financial services starting with payments and slowly moving into credit, insurance, savings, and investments. A few tech giants like Facebook, Alibaba, Tencent, Apple, and Amazon are already making headway in that space in various parts of the world.
The Cupertino giant Apple recently launched a credit card, ‘Apple Card,’ in partnership with Goldman Sachs. Jeff Bezos’ Amazon has been offering small loans for its merchant for years now, and social media giant Facebook revealed its ambitious plan to help global finance with its Libra cryptocurrency. It’s worth mentioning that the US government has already asked the company to suspend the development of Libra.
Data is the key!
The main advantage for big tech firms, in this case, is that they can utilise the existing customer base and the enormous amount of data generated by their business lines. This data gives big tech firms the edge over its competitors to create a more personal, relevant experience for users.
All said and done, the majority of the people are still prefer banks for any financial transaction. It’s time for traditional banks to concentrate on their customers and add value through personalisation to stay ahead of big tech firms.
Image credits: Uber
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