In India, Uber drivers are struggling to pay for the fuel they need, as the on-demand service pays its gig workers electronically. It's led drivers to request for their passengers to pay with cash so drivers can pay for fuel, reports in The Hindu Business Line explained, where drivers cancel the trip and complete a trip "off the books."
However, a new company has launched in the country aimed at getting Uber drivers — and other gig economy workers — off cash.
The publication reported Monday (Oct. 29) that Bon Fleet Solutions is focusing on expansion since rolling out a credit card for gig economy workers last year, allowing professionals to make payments without relying on getting paid in cash. The Bon card is offered through Bon Fleet Solutions' collaboration with other non-bank financial companies that are able to extend credit to professionals, as well as its coordination with YES Bank and Federal Bank.
The company's Founder and CEO Bhasker Kode pointed to his experience rising in Uber and industry competitor Ola, and hearing that many of these drivers still did not qualify for a credit card, despite professionals in other industries being able to obtain credit. The Bon platform automatically matches gig professionals with an non-bank financial company (NBFC), while Mastercard issues the cards for the employees.
"Our platform allows for real-time auction among NBFCs for sanctioning the credit," Kode explained to the publication, adding that the company is planning to introduce RuPay cards moving forward.
As the company looks ahead, Bon plans to expand into new markets in India during the next 18 months, fueled by a Seed investment round closed last month, led by Axilor Ventures and Better Capital's AngelList India Syndicate. The funds will also be used to add new NBFC and bank partnerships, Bon said.