Uber Driving Deeper into Financial Services

November 1, 2019 9:12 am Published by
This summer, we posted about how Uber was faring as one of the 2019 unicorns and then the company’s whiplash from its record-setting quarterly loss. Ahead of the third-quarter report, news that the ride-sharing giant is driving deeper into financial services.

According to a CNBC report, Uber recently announced the formation of Uber Money. The new division will lead efforts to create a digital wallet and upgraded debit cards and credit cards, which is a joint product with Barclays. The division’s mission, said head Peter Hazlehurst, is to give people access to financial services they have been previously excluded from.

Uber’s debit card offers drivers an enhanced “instant pay” service, which is like a no-fee banking account. Its initial testing of the feature was a hit: More than 70 percent of driver payments were made using instant pay. The service also comes with no-cost $100 overdrafts, which can help drivers in need gas up and get going.

Uber’s foray into financial services offers the company many benefits, says CNBC, such as building platform loyalty among drivers and users alike and alleviating corporate financial pressure.

It’s also a sign that tech giants are expanding their reach, as Uber follows Apple’s recent launch of a credit card with Goldman Sachs and Amazon’s continued practice of offering small business loans to its merchants.