Uber’s next business idea could be lending money to its drivers, and it may come with special caveat
It is natural to have doubt in the possibility and validity of this kind of business proposal, especially when it is coming from a ride-hailing company, and it is specifically suggested for drivers only. For a moment, you would probably think about the sustainability of the business, however, given that it is proposed by an already successful company, then you would probably say to yourself that “nothing is impossible”.
To cut the long emphasis short, Uber is reportedly considering a venture into offering loans directly to drivers, and as part of the company’s preparatory for the supposed new idea, it has sent out a survey to some drivers, further indicating that the company is starting to build a “new financial product” designed to help Uber drivers “in a time of need.”
The survey contained a number of questions regarding the driver’s previous use and future interest in loans. On that note, questions like “how much loan has been previously secured” was asked, also, “if such loan was below or above the $1000 cap”. The part that makes the people think that Uber is probably considering to start a loan business is where it asked: “If Uber provided loans, what amount are you most likely to request?” The question offered drivers answers including “Less than $100,” “Between $100 and $250,” “Between $250 and $500” and “More than $500.”
For now, Uber has not gone public about the ongoing survey, however, there is a likely hood that the ride-hailing company may eventually execute the plan, and of course, it will not be the first time that the company will dive into such business. For instance, the company had previously offered a Cash Advance program to Drivers in California and Michigan, however, came under fire from consumer advocates who believed the program shares some resemblance to payday loans, hence did not record a massive success. Hopefully, the company will get it right this time around.
Meanwhile, in other news, Uber is reportedly planning to spend $200 million in order to expand its freight trucking venture.