Uber launches Uber Money

Kramer Phillips By Kramer Phillips | 1 year ago

Uber is once again getting into the financial services industry.

In an announcement on Tuesday, the ride-sharing behemoth said it will form a new division called Uber Money to house its efforts — include a digital wallet and upgraded debit and credit cards — for users. The emphasis, at first, will be expanding Uber’s efforts to give its 4 million-plus drivers and couriers around the world access to a mobile bank account so they can get paid after each ride.

“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,” Hazlehurst said in a phone interview with CNBC.

The move is likely to put pressure on ride-sharing competitor Lyft. With drivers now able to withdraw funds almost immediately, Lyft will likely have to match.

“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,” Hazlehurst said.