There may be a lot of things that come to mind when you think of what your passengers do during an Uber trip. Is applying for a credit card one of them?
It is now.
Last week, Uber announced the launch of a new Uber Visa card, which customers can apply for in the app.
Perks of the Uber Visa
The new credit card takes minutes to apply for, and you can do it right from the app. Uber can pull most of your personal data straight from your Uber user profile, allowing customers to apply for the card in less than the time of the average Uber ride. After that, the company will run a background check and determine if the customer meets criteria to be approved. True to its technologically-savvy roots, Uber is pushing for the digital capability of this card over the physical benefits—users who have their card approved can load it into their mobile wallet in seconds.
If you’re comfortable trusting Uber to protect your personal data, getting the Uber Visa can have a lot of perks. Here are just a few:
- Phone insurance up to $600 if you use the card to pay your monthly bill
- No annual fee
- 2 percent cash back on Uber rides; 4 percent on dining purchases, including UberEATS; 3 percent on airlines and hotels, including Airbnb; and 1 percent on everything else
- $50 annual credit toward online subscriptions if you spend more than $5,000 on the card annually
- Penny-per-point system, redeemable toward cash or Uber credits
Uber Visa isn’t the only way to earn rewards for Uber, however. The American Express Platinum Card also has rewards—$200 toward Uber each year—along with a Visa Inc. cashback program and a Green Dot prepaid credit card partnership that Uber launched last year. The Chase Sapphire Reserve credit card also has rewards for Uber, but with a $450 annual fee.
Why Did Uber Launch a Credit Card?
So what’s Uber up to? Experts predicted for a while that Uber would launch its own card. Largely, this was because so much of Uber’s business depends on customers’ ability to pay digitally. After all, Uber doesn’t accept cash for its fares, right?
Other sources, however, indicate that Uber might be more interested in information than a big jump in business. In order to qualify for the various rewards this card offers, customers have to allow Uber access to information.
For example, if you want that $50 online subscription bonus, you have to spend $5,000 on your card in a given year. How does Uber gain? They get information on what exactly you spent all those dollars on. That much data could give the company insight into what partnerships and business extensions to develop as it attempts to diversify its interests.
This gold mine of data may well allow Uber to compete with e-commerce giants like Amazon. Amazon is well known for its ability to use customer data to tailor the shopping experience (and drive up sales). However, Uber has the benefit of interfacing with the “real world” rather than just online.
Other sources indicate that Uber may not be the only gig economy platform moving toward a credit card partnership. If nothing else, this move will force the other platforms to think beyond their service area as they continue to grow and diversify.
