The New Uber Instant Pay Program: Get Paid Right Away By Uber
If you’re an active driver at Uber, you can get paid immediately through Uber’s Instant Pay program. The feature debuted on March 17th, 2016, in the company’s hometown, San Francisco.
It was launched just one day after the introduction of the Family Profiles feature and less than a week since UberEATS was made into an independent app.
…in partnership with Green Dot and GoBank
Uber partnered with Green Dot Bank to implement the program, and their drivers can get an Uber Debit Card for free. This allows drivers to withdraw their earnings right away and at any time of the week.
Uber will not charge any fees for the program and neither will Go Bank. This is provided that drivers access their accounts at least once every six months.
If an account remains dormant for longer than this time limit, the driver will face a monthly fee of $8.95.
Typically, drivers are allowed to cash out their earnings on a weekly basis. Currently, no option is given for the specific day of the week on which a driver would like to get paid.
The Instant Pay program changes all that. Although it’s not the first of its kind to hit the online transportation sector, its pocket friendly nature gives it a competitive edge over rival services.
Uber’s Instant Pay program vs. Lyft’s Express Pay
While impressing the low-to-middle-income drivers remains Uber’s main motive, the move is partially in response to Lyft’s adoption of a similar program less than four months ago.
Lyft’s Express Pay program requires drivers to have a minimum deposit of $50 and charges a fee of 50 cents every time a transaction takes place. Save for the fact that it is tried and tested, the program is not really cost effective for drivers who wish to make several transactions a day.
For now, though, Uber plainly stands head and shoulders above Lyft and the rest of the ride-sharing companies on this facet. It will likely take a lot of creativity to oust it.
Uber’s new vs. old instant pay plans
A week after Lyft introduced the Express Pay program, late last year, Uber announced a similar service with startup Clearbanc. This would be the second time that they would try to stage a challenge.
The Clearbanc service, which is a product of the Y Combinator Fellowship program, debited $2 on a driver’s account each day they received a payment. This was, of course, very costly in the long run.
If a driver, for instance, worked for five days a week, it would cost them $10 to use Clearbanc’s debit card. This would amount to approximately $40 a month, making it almost as twice as costly as a standard bank account.
Perhaps the main reason the service wasn’t that friendly to drivers and was never really a success is because Uber wasn’t in any formal partnership with Clearbanc and was not in the position to modify the company’s fee structure.
Uber was, however, aware of the offering, according to Clearbanc’s founder and CEO Andrew D’Souza, and were in approval of it.
This is not the only time in the past Uber have offered cards to their drivers. The company has been offering MasterCard and FleetCor fuel cards for some time now that would let drivers enjoy fuel discounts of up to 15 cents per gallon.
Not so popular either, but a good proportion of drivers still use the cards and are content with the service.
The program will surely make the experience of being an Uber driver even more cushy. It will afford its clientele much greater control over their finances, in a much more affordable way than previous efforts.
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