Uber Introduces new credit card for customers
Uber is teaming up with British bank Barclays to offer its first branded credit card, the companies announced today. The card offers rewards for purchases at restaurants, hotels, and, of course, Uber rides. You can even apply for the card within Uber’s app starting next month.
Uber says it only takes minutes to be approved, after which users can add the card to their Uber wallets. A physical card will arrive in the mail about a week later. The new card has no annual fee and offers a bonus of $100 after spending $500 on purchases in the first 90 days. It’s not as generous a bonus as some major credit cards, like Chase’s Sapphire Reserve card, which offered a $1,500 sign-up bonus to people who spent $4,000 in the first three months.
"no annual fee"
Other perks include 4 percent back on restaurants, takeout, and bars, including UberEats; 3 percent back on airfare and hotels, including Airbnb; 2 percent back on all online purchases, including video and music streaming services like Spotify; and 1 percent back on all other purchases. Card users will also receive an annual $50 subscription credit that can be used on services like Spotify, Netflix, or Amazon Prime.
Unsurprisingly, this product is being aimed squarely at Uber’s youthful, millennial users, who are apparently helping drive the credit card business back to its pre-recession highs.
Branded credit cards are a popular way for companies to cement customer loyalty. Uber’s first foray appears to be an effort to lock in users that have typically proven to be less fickle about which ride-hail service they use. (Remember #DeleteUber?) The announcement comes amid reports that Lyft’s business is growing at a faster rate than Uber’s, even though Uber remains significantly larger than its rival.
Uber is the first ride-hailing service to offer its own branded credit card. Lyft has a deal with Delta to earn miles while ride-hailing, but it’s not via a card. American Express also offers some users free Uber rides as part of its reward system.
Source : theverge