Financial products are heading towards Uber drivers with small loans

In June 2019, a multinational TNC in the U.S., Uber, did go through a hiring spree across New York. According to sources, the leading TNC service provider has hired hundreds of fintech-based technology workers for curating different products. Uber plans to use the products for increasing engagement and loyalty among the drivers and users such as banking.

Moreover, this gave rise to a series of speculations. As of now, it looks like Uber’s new initiative is currently at infancy, and it is taking baby-steps while building products and services for the drivers. Vox/Recode suggests that Uber is planning to provide significant loans directly to the drivers.

By the looks of it, the story concerns the inception of a conventional in-app survey that was directly addressed to the drivers. Furthermore, the story suggests that Uber is talking to the drivers regarding a cutting-edge financial product which the drivers can utilize at the time of their need.

Later on, the survey gave rise to a question and answer session where the drivers were asked about their financing loans. The drivers had to reveal their financial loans of $1,000 or even less, which they availed in the past three years. According to the source, the question was, what is the amount that the drivers might like to request. After the question sessions came to an end, the drivers were asked about their loan choices like less than $100 or between $100 & $250. The drivers were also asked to choose between $250 and $500 or over $500 loan amount.

Currently, there isn’t any form of indication regarding the timing of the small loan products which are offered to the drivers. The TNC provider is yet to make a public comment regarding the recent survey.

Nevertheless, it is essential to note that Uber has already formed its very own financial product space. It also did offer the cash advance program to the drivers from Michigan and California. In addition to this, the company received extensive criticism for the pay-day loans. Uber has been offering the drivers with new leases for new cars for a long time now. Currently, the drivers are provided with the co-branded credit card alongside Visa. Additionally, the TNC company is also providing the digital wallet Uber Cash for the riders.

Uber is not alone when it comes to rolling out small cash loans to its employees. Walmart and significant other companies are providing lucrative payroll loans and advances to their employees. Currently, Uber incorporates an extensive FinTech team which suggests that Uber is just getting started with its plan of expanding services and products to its employees.

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