Uber to launch instant pay program for drivers

PanARMENIAN.Net - Uber is launching a pilot program intended to help the ride-hailing service's drivers draw their pay faster, an effort that may also fend off emerging payday lenders who are targeting drivers, the Associated Press reports.

Uber will allow drivers to deposit their earnings from each ride into an account with GoBank, a subsidiary of the pre-paid debit card company Green Dot. Uber won't charge any fees for the service, and GoBank will not charge a monthly fee so long as drivers access their accounts at least once every six months. Should it go untouched for longer, drivers would face a monthly fee of $8.95.

San Francisco-based Uber pays its drivers once a week, sometimes leading to financial stress for some members of its largely low-to-middle income workforce, AP says.

The pilot program, which Uber is launching in San Francisco and a few other cities, is a direct challenge to companies that offer drivers faster payment in exchange for high fees. Drivers have been increasingly vocal about the need for alternatives, Uber executives said.

"Our drivers should not have to pay for this technology," said Wayne Ting, Uber's general manager for the San Francisco Bay Area.

The lack of an option at Uber, by far the largest of the ride-hailing app companies, to pay drivers instantly has increasingly resulted in services going into the business of providing cash advances or deposit services to Uber drivers and other members of the so-called "freelance economy."

Uber competitor Lyft recently launched an instant pay program, but it requires drivers to deposit at least $50 and charges a 50 cent fee for each deposit, the Associated Press reports.