New Uber Money service allows drivers to access payments immediately
Uber Technologies Inc. has launched a new division that offers financial services for Uber drivers.
Called Uber Money, the new service comes with a Visa debit card and delivers, for the first time, the ability for Uber drivers and related service providers to access funds they have earned immediately. Previously, money earned by Uber drivers were transferred to a third-party bank account weekly.
Uber Money, powered by Green Dot Corp., a Pasadena, California- based prepaid debit company, offers zero fees and is integrated into the Uber Driver app. As a sign-on bonus, Uber drivers who sign up to be paid through Uber Money are also being offered a cashback on gas ranging from 3% to 6% depending on their Uber tier.
The new service complements Uber Wallet, a mobile-focused service that allows Uber drivers to track their earning and spending history as well as transfer funds. As part of the Uber Money launch, Uber is also relaunching the Uber Credit Card, a physical credit card directly linked to Uber Money that allows drivers to spend their money earned at points of sale that accept Visa.
For Uber users, the new service will have zero effect. For Uber providers, be they Uber Car or even Uber Eats, the new service is a new way not only to be paid but to gain access to the money they earned more promptly.
“We wanted to help everybody understand that there’s a new part of Uber that’s focused on financial services and that has a mission of giving people access to the type of financial services they were excluded from,” Peter Hazlehurst, the head of Uber Money, told CNBC. “Not only do you get access to your earnings in real time, it doesn’t cost you anything to keep the money there and you can spend it whenever you want to.”
The offering of near-term or immediate access to payments also gives Uber a leg up over its competition. That competition is Lyft Inc. in the U.S., where Uber Money is initially launching, but as it rolls out globally, various other companies as well.
Although Uber is starting Money for its service providers, longer-term the company may extend the services to customers as well.
“The reality is that the needs of our partners in the U.S. and in Brazil and in Australia and in India mirror in many ways the needs of consumers as well, particularly in the cash-heavy economies,” Hazlehurst said. “And the opportunity that we have is to expand to help all of those people have access to financial services.”
Image: Uber Money
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