Ridesharing

Uber Ecosystem Expands Into Uber Cash

Mention innovation and disruption and thoughts will often turn to Uber. The story of the ridesharing company's massive disruption of the century-old regulated taxi industry is well-documented.

The nuances of that disruption, however, may not be.

According to a new PYMNTS column from Karen Webster — one inspired by the recent launch of Uber Cash — the fuel source that ignited the Uber platform wasn’t the smartphone (though that surely helped), but payment cards and the card networks – specifically, how Uber used them both.

But since Uber’s launch, its ecosystem has expanded, as the column describes, putting the concept of “ecosystem” into historical context. Today, in fact, many call Uber Eats the company’s secret weapon.

Now comes Uber Cash, a closed-loop payment network that lets consumers easily add funds to its stored value account.

“We are just giving people a more seamless way to pay on Uber,” said Rob Daniel, lead of financial products at Uber. “They can get rewarded and have the ability to plan ahead and budget” for their Uber purchases. “They can better plan out their spend across Uber. And we can connect all of our growing platforms and modalities via a single payment method.”

Will Uber Cash one day extend beyond that closed-loop offering? “That’s certainly an interesting opportunity,” Daniel said.

Uber’s ecosystem is growing: Consider Uber’s purchase of JUMP Bikes for an undisclosed price in April. Another example is Uber’s recent announcement that it wants to offer access to electric bicycles and scooters for shorter trips. Uber has made deals with electric scooter company Lime and London-based Masabi, which offers mobile ticketing for public transportation.

All fueled by payments and payments cards.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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