On October 25, at the Money2020 conference in Las Vegas, USA, Uber introduced it’s foray into the credit card business in collaboration with Barclays and Visa.
Uber’s new credit card is being widely regarded by analysts and experts as a new point of access to valuable customer information, marking Uber’s play into assuming a larger role in both the online and the offline space.
Uber’s cab-hailing service is currently being used by 10 million people on a daily basis, throughout the world.
Starting November 2, in the United States of America, Uber will give it’s users the option to get the card from within the app itself. The application form in the app will be filled-up automatically with all the information available on file of the user. Uber will also give the option of applying for the Uber Credit Card online through it’s website.
There are no charges applicable for getting the card, but the card does offer some great bonuses as compared to it’s competitors. A bonus of $100 is offered if a user spends $500 within the first 90 days of acquiring the card.
The Uber Credit Card will process your credit-worthiness instantaneously, and will come with annual percentage rates of 15.99%, 21.74%, 24.74% based on an applicant’s credit-worthiness.
It also features other perks, like 4% cash-back on take-out, dinning-out and bar purchases, 3% cash-back on air-travel, Airbnb and hotel-stay purchases, 2% cash-back on online purchases and 1% cash-back on all other purchases.
The newly launched Uber Credit Card will also give it’s users a $50 credit for online-subscriptions if they spend $5000 on the card annually. Uber is saying they will also provide phone insurance of $600 to those who use their card to pay their phone bills.
The Uber Credit Card will also not have any extra foreign transactions fees for any purchases made outside the borders of United States. And, as per the usual Uber fashion, there will be exclusive invites to events for all Uber card holders.
Experts and critics alike are of the opinion that Uber isn’t getting into the credit card industry but getting into the industry of finding out customer trends, social behaviour trends, and just collecting vast amounts of data from it’s card holders to gain more insight into how people think and spend. Uber has however, explicitly mentioned that they will not be selling or sharing the data they collect in any way to any third-party entities.
The integration of the Uber Credit Card within the Uber app looks quite remarkable and works quite fabulously and it’s a great way for Uber to capture all the valuable data of it’s users. In recent years, it seems like customer spend-data has become a commodity and Uber’s push into the finance space with it’s credit card is just a nod towards that direction. Let’s just hope that there isn’t another privacy debacle with Uber!