Uber As Loan Shark? Help Uber Build Something New

Antvirus

Well-Known Member
Check your app for the latest survey.
Uber handing out loans?
My that's comforting...

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BigSlick

Well-Known Member
Can you imagine getting a loan from GoBank? Hahahahaha
In a way I kind of have gotten one. They allow you to go to a -$100 balance if you use the card to buy gas. I've used that card when I had no money in it but other means to pay because of the cash back.
 

Antvirus

Well-Known Member
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  • #6
In a way I kind of have gotten one. They allow you to go to a -$100 balance if you use the card to buy gas. I've used that card when I had no money in it but other means to pay because of the cash back.
Oh same. As a rule I keep that card -
 

anteetr

Well-Known Member
Looks like they’re getting into the payday lending business.

Its just as predatory as instant pay, but much more profitable. As an added bonus, when instant pay goes down half those ants that cant pay for gas to drive without it will still have a way to be able to work that day.

Personally i see much more synergy from this than EATS.
 

Antvirus

Well-Known Member
  • Thread Starter Thread Starter
  • #8
Its just as predatory as instant pay, but much more profitable. As an added bonus, when instant pay goes down half those ants that cant pay for gas to drive without it will still have a way to be able to work that day.
Maybe Uber Pro will offer suicide and wake coverage as an added benefit?
 

LuxCarSpy

Well-Known Member
Who is really giving out the loans ....
If you have a balance in your account at GOBANK you are loaning Uber money at 0% return.


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BigSlick

Well-Known Member
Degen is gonna degen.
Who is really giving out the loans ....
If you have a balance in your account at GOBANK you are loaning Uber money at 0% return.


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Go Bank isn't owned by Uber. You could say it's worse because it's actually owned by Walmart, but that's irrelevant...

How is your money in Go Bank, with all the cash back for gas, any worse than it being in a standard checking account that offers next to no interest and no cash back for purchases?
Look, I rip Uber when they deserve it, but I don't blindly rip everything that they do just because they are Uber. Plus, even if you were giving Uber an interest free loan, wouldn't that be better than giving one to Bank of America? We need Uber to stay in business if we want to keep doing rideshare.
 

TheFakeDeal

Well-Known Member
Degen is gonna degen.


Go Bank isn't owned by Uber. You could say it's worse because it's actually owned by Walmart, but that's irrelevant...

How is your money in Go Bank, with all the cash back for gas, any worse than it being in a standard checking account that offers next to no interest and no cash back for purchases?
Look, I rip Uber when they deserve it, but I don't blindly rip everything that they do just because they are Uber. Plus, even if you were giving Uber an interest free loan, wouldn't that be better than giving one to Bank of America? We need Uber to stay in business if we want to keep doing rideshare.
Majority of the world population is like that, and they hate facts
 

LuxCarSpy

Well-Known Member
Degen is gonna degen.


Go Bank isn't owned by Uber. You could say it's worse because it's actually owned by Walmart, but that's irrelevant...

How is your money in Go Bank, with all the cash back for gas, any worse than it being in a standard checking account that offers next to no interest and no cash back for purchases?
Look, I rip Uber when they deserve it, but I don't blindly rip everything that they do just because they are Uber. Plus, even if you were giving Uber an interest free loan, wouldn't that be better than giving one to Bank of America? We need Uber to stay in business if we want to keep doing rideshare.
GOBANK is owned by Green DOT (GDOT is stock symbol). GDOT is 89% owned by institutional investors, NOT Walmart. Their main business is issuing white label debit cards, secure credit cards (cash deposits to secure credit lines etc.) and then processing the transactions. White label means the cards are branded by others known as affinity groups (ie Uber Walmart etc). Usually the affinity groups have special arrangements (get huge cash payments to get their groups to use the cards such as short-term discounts on purchases ie gas).

If you dare do the math (lots of calculations), the 15% discount on gas is approximately 1.1% of Uber revenue, which is likely close to the amount Uber pays for merchant card transactions (charging customer cards for rides). Having said that, it will only last for a while because it is just GDOT giving back the fee it would charge Uber.

The issues I outlined are based on the FACT that GDOT stock price has dropped around 70% since its high ($93 to $28). Considering its owned predominantly by institutions (professional money managers) that suggests they are dumping it!. Another note, Uber stock has fallen about 35% since its' IPO. I am all-in for investing on potential home-run companies, but I'd rather not stick around to catch falling knives.

As far as giving interest free loans ... I am opposed to giving anyone interest free loans ...However, given the choice above, I'd prefer to give it to the bank whose customers have the greatest chance of paying at least the principal back.! My guess is Bank of America customers would have a greater likelihood of paying back the money. Not to pile on anymore anecdotal info on the subject but check out complaints about GDOT's different card businesses. When you sort them out its all about the timeliness of paid in customer cash reaching the balance available on the customers card... That's called Floating OPM (Other People's Money).
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Additionally, you can bet GDOT and Uber have some sort of participation agreement regarding account balances and future loans. Think about it, once the gas discount incentive expires, what does Uber get out of the card deal!
 
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BigSlick

Well-Known Member
The gas discount isn't completely going away. It is just going back down to 4%... I only keep enough on the card to cover gas so even if I get screwed out of whatever I have on there it is less than the cash back I've received over the last 2 years or so. It is rare for me to have more than $50 in that account.
 

PhillyMatt

Well-Known Member
Its genius on Uber's end tbh. Dont be surprised if instant pay starts crashing much more often if/when this goes through lol

"Oh, well, we know you have $150 with us, but, you can't have it until wednesday. Want an immediate loan with 30% interest? No problem!"
 
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