Uber is Creating a Fintech Division
First, it was one of the companies working with Facebook on the cryptocurrency Libra project. Now, we are learning that Uber is planning to expand into financial products with a fintech unit in New York. Certainly, Uber needs to get into one sector where making money is the business: finance. An Uber card with fees discounted for its about 93 million active users will bring much needed income to reduce the escalating operating losses in the ride-hailing pioneer. Also, it can offer insurance services to its drivers and riders. Technology has reduced barriers of entry; anyone can do anything, and Uber Fintech is coming.
There are many possible payment and lending innovations Uber could come up with: It has 93 million active users globally, most of whom use linked credit cards or fund a wallet called Uber Cash to pay for rides and food delivery.
The two major areas being looked at by its financial products team involve building “payment experiences” that encourage riders and eaters to use Uber or remove costs from the system, and helping contractors manage the funds they earn, according to a job posting.
That’s in line with products Uber has already released, like Uber Cash, which includes discounts when a user funds the wallet, its loyalty program Uber Rewards, and its co-branded credit card. On the other side of the service, Uber allows drivers to get paid as often as five times a day instead of waiting for weekly paychecks