SAN FRANCISCO–Uber is rolling out a series of expanded financial services under the name “Uber Money” for its four-million drivers that includes a no-fee overdraft protection.
Announcing the new initiatives, which in addition to the no-fee $100 overdraft protection also includes a digital wallet, Uber said it would begin to give drivers “real-time payouts” after every trip through their Uber Debit account, rather than their being paid just once a week, as is currently the case, the Financial Times reported.
“An expansion of its Uber Cash service will give drivers the ability to digitally settle cash payments within the app, while new Uber credit and debit cards are also being rolled out,” the Financial Times stated.
That Uber would expand its presence in payments has been a subject of discussion and concern within the credit union community from almost the time the ridesharing company entered the market.
Laying the Groundwork?
The analysis noted the news follows years of criticism that Uber has been too focused on its riders at the expense of its drivers.
“But as the company aims to develop its payments offering, fueling speculation that it is looking to develop a consumer-facing payments service in the style of ‘super-apps’ such as Alipay and WeChat, it is establishing ways for drivers to manage money, save and earn rewards points,” the Financial Times reported.
Peter Hazlehurst, who heads up payments at Uber, told the Financial Times that the result of Uber Money’s new services will be to provide drivers with “cash right away,” but in digital form.
Hazlehurst made the announcement, which forms part of the company’s efforts to expand its services for the unbanked in markets such as Mexico and Brazil, at the Money 20/20 fintech conference in Las Vegas.
“Forty percent of Uber’s ride payments worldwide are settled in cash, something that can prove difficult when riders lack funds or drivers do not have the correct change,” the Financial Times stated. “But now Uber will in effect cover the difference, enabling the driver to take part of the payment in cash and settling the rest digitally later.”
Follows On Heels of Uber Debit
In 2018, Uber launched Uber Debit, which gives drivers an account into which they were paid and from which they can withdraw funds. Now, Uber drivers will be able to manage their earnings within the Uber app, without any need for a second personal bank account, the Financial Times stated.
“Everything that we launch will be either fee-free, or as low fees as we possibly can,” Hazelhurst told the Financial Times. “Best price, best value for a customer.”
The Uber Money service is rolling out in the U.S. initially, followed by Mexico.