Uber HOOK !Piloting Payment Innovations: Advance Pay and Instant Pay
By Rachel Holt, Regional General Manager and Uber Public Policy
Research by the Federal Reserve has found that 47% of people in the U.S. would struggle to handle an unexpected bill costing $400 - with a third saying that they would be forced to borrow to pay. Oftentimes, people who face cash shortfalls have turned to payday loans at very high interest rates, or credit card debt.
In the Advance Pay pilot, Clearbanc will offer eligible new drivers a cash advance of up to $1,000 with no interest. Participating drivers will receive some of the funds up front, and the remainder after they take their first trip.
Since Advance Pay is not being offered to existing Drivers, it is clearly a carrot being dangled to lure people with financial hardship to get them to sign up to drive for Uber!
Watch the below video City of Houston Mayor Press Conference.I'm actually very upset
to live in a city where a company like Uber can just come in and manipulate the population like this.
why would you ever take a loan when you could just get a referral bonus? duhIt's brilliant. Other than competition with Lyft, Uber's number one problem is driver retention. If they loan drivers $1000, they've got them hooked. They're locked in, and will probably take another $1000 loan before the first one's paid off. A vicious cycle making drivers unable to quit.
Uber & Lyft prey on the poor.