Uber Releases Instant Pay service for drivers

Uber Launches Instant Pay Service For Drivers Amidst Tight Competition In E-Hailing Market

Online Cab service provider Uber now makes encashment easier for drivers.

On Thursday, Uber launched a new Instant Pay service for drivers in San Francisco. The service is in the pilot phase now.

Uber Drivers in the company’s hometown will now be able to sign up for the Uber Debit Card from a mobile business checking service offered by Green Dot Bank. The service goes by the name GoBank. The debit card can be used at any time for drivers to cash out their earnings.

According to Uber, all the transactions are free of charges and the debit card requires no minimum deposits.

Uber released a statement on their website which explained the reason for them launching the instant pay pilot.

“Today’s launch of Instant Pay is a result of valued feedback from our driver-partners. We look forward to inviting more drivers to this pilot program and developing more features that help more drivers reach their goals.”

Uber, which operates in almost 400 cities, currently pays its drivers once a week. This forces some drivers who are in urgent need of money to wait for days before they could cash their earnings.

Uber has been criticized by concerned communities and critics for not providing drivers a quick access to their earnings.

Uber’s service has been friendlier to passengers than it has been to drivers. Customers of the company use a mobile app to tell drivers where to pick them up and where they’re going. Customers then use credit card information and pay the company instead of paying the drivers. The driver then collects his or her fare once per week.This stands in contrast to a traditional taxi driver, who get access to their earnings instantly.

Uber admitted that ability to collect cash instantly to some drivers, although not for all.

“Whether it’s to support your family, pay the rent while going back to school, or earn money on the side, drivers say the flexibility to drive on their own time is a top reason why they drive with Uber.

However, Uber is still a little behind the times. While this new feature is expected to give a boost to Uber’s business, its major competitor Lyft had already announced similar feature in December.

“We can’t think of a better way to treat you better than letting you get your money faster,” Lyft made a statement targeting to drivers last year.

Uber has reportedly taken several new business decisions following a fierce competition in the car-hailing service market. The most recent being a purchase agreement of a fleet of Mercedes with automatic features.

Uber is facing a tight competition in all parts of the world, including India—the second largest population in the world.

The major competitor of Uber in India is OLA, an India-based cab aggregator. Other major competitors of Uber include large and well established online cab services that are available in smaller cities such as Bookcab. The online cab rental giant of India has lately been focusing on expanding its services to smaller cities.

Uber releases instant pay amidst tight competition
[Photo by David Ramos / Stringer]
“When travelers from metros visit these smaller towns, there are hardly any taxi players who offer quality services. Looking at this growing demand, we decided to venture into the smaller cities. In the coming months, we want to increase our base in the tier III markets,” Ashish Kumar of Bookcab, said in an interview.

Although Uber tuned its announcement this week toward the San Francisco Bay Area market, company spokeswoman Jessica Santillo told Fortune that “the pilot is underway in several other cities, as well.” Santillo, however, didn’t reveal where else Uber Instant Pay is now available.

[Photo by Pablo Blazquez Dominguez/Stringer]