Uber Paid $ 1.3 Billion To Drivers Using Instant Pay In Past 12 Months
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Last year, Uber launched Instant Pay, a service that allows drivers to receive their earnings on demand. On Thursday, the company announced that $ 1.3 billion had been paid in the past 12 months with âhundreds of thousandsâ of drivers enrolled.
Initially available as a pilot program, Instant Pay is available in all US markets where Uber operates and is being tested in 11 countries overseas. The principle behind the service is to expedite payment so that drivers don’t have to wait for a periodic paycheck – they can receive their income instantly. Uber said the busiest day for payments was December 18, largely due to the proximity of the Christmas holidays.
Uber is not alone in offering an instant payment service. Its US competitor Lyft has leveraged Stripe to power its own service, called Express Pay. In 2016, half of all Lyft drivers used the program, with $ 500 million paid in the first 10 months.
According to Driss Benamour, head of global payments at Uber, the enthusiastic adoption of Instant Pay took the company slightly by surprise. âWe thought Instant Pay could be a success when we introduced it with GoBank’s Uber debit card a year ago. Almost 80,000 people signed up in a few months, âhe wrote in a blog post. “But it was after we extended Instant Pay to virtually all debit cards that things really started to take off.”
With what appears to be a successful program, Uber believes this is proof that it gives drivers the ability to work and get paid on a schedule that works for them. Instant Pay is a good thing the company appears to be doing for drivers, especially in light of recent incidents that have occurred that may make drivers think. Earlier this year, Uber chief executive Travis Kalanick was caught on camera berating a driver, and the company’s head of U.S. and Canadian operations, Rachel Holt, admitted it was paramount to improve relations with drivers.
“It’s clear [drivers] appreciate the freedom that Uber offers, the ease of getting around the city and the flexibility of being their own boss, âshe said at a press conference last month. But in light of Kalanick’s explosive video and the departure of President Jeff Jones, Holt said Uber is “reviewing everything we do to rebuild our relationship with the drivers.”
Services like Instant Pay and other benefits can help motivate drivers while allowing them to focus on providing great experiences with drivers. It also eliminates unnecessary distractions like figuring out when they’ll get their income so they can take care of something more important like paying bills, shopping for groceries, or just surviving.
As for Uber’s Instant Pay sequel, the company opposed it, but it is likely that the service will expand worldwide to bring this benefit to more drivers while further reducing barriers for drivers and couriers to register for the service.
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