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Uber pilots program in California and Michigan that advances New Drivers up to $1,000

chi1cabby

Well-Known Member
  • Thread Starter Thread Starter
  • #3
Piloting Payment Innovations: Advance Pay and Instant Pay
By Rachel Holt, Regional General Manager and Uber Public Policy

Research by the Federal Reserve has found that 47% of people in the U.S. would struggle to handle an unexpected bill costing $400 — with a third saying that they would be forced to borrow to pay. Oftentimes, people who face cash shortfalls have turned to payday loans at very high interest rates, or credit card debt.

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In the Advance Pay pilot, Clearbanc will offer eligible new drivers a cash advance of up to $1,000 with no interest. Participating drivers will receive some of the funds up front, and the remainder after they take their first trip.
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Since Advance Pay is not being offered to existing Drivers, it is clearly a carrot being dangled to lure people with financial hardship to get them to sign up to drive for Uber!
 

Tequila Jake

Well-Known Member
This is a really bad idea for most people. I went to Clearbanc's web site and looked up their Terms of Service. There are no transaction fees or interest but there is a $2/day service charge whenever you have a balance. That's the equivalent of a MINIMUM of 36.5% APR (a lot more as your balance decreases below $1000).

Since it's for new drivers only, it sounds like Uber is going to sign up someone who is in a state of financial desperation and indenture them for at least as long as it takes to pay off the loan, perhaps years. In Detroit, with a $0.30/mile rate, Uber taking 25% and Clearbanc taking 50% of what's left, drivers are working for $0.1125/mile. At that rate, they will never pay off the loan.
 

tohunt4me

Well-Known Member
Piloting Payment Innovations: Advance Pay and Instant Pay
By Rachel Holt, Regional General Manager and Uber Public Policy

Research by the Federal Reserve has found that 47% of people in the U.S. would struggle to handle an unexpected bill costing $400 — with a third saying that they would be forced to borrow to pay. Oftentimes, people who face cash shortfalls have turned to payday loans at very high interest rates, or credit card debt.

~~~
In the Advance Pay pilot, Clearbanc will offer eligible new drivers a cash advance of up to $1,000 with no interest. Participating drivers will receive some of the funds up front, and the remainder after they take their first trip.
--------------------------------------

Since Advance Pay is not being offered to existing Drivers, it is clearly a carrot being dangled to lure people with financial hardship to get them to sign up to drive for Uber!
Uber HOOK !
 

Slavic Riga

Well-Known Member
I'm actually very upset
to live in a city where a company like Uber can just come in and manipulate the population like this.
Watch the below video City of Houston Mayor Press Conference.
Explained it in simple words & with No Holds Barred.
Watch & listen very keenly from 15 Minutes onwards. In essence the whole video is very interesting.



Now you will have a better understanding.
 

sellkatsell44

Well-Known Member
Moderator
U know, it's funny that that brings up cc debt because that's exactly what I thought of when I thought of uber and its ride sharing concept guised as a taxi really. I mean taxi guised as ride sharing.

Same frustration I felt with credit card and lending folks money instead of addressing the ever widening gap between the working class and the upper class (and let's not forget the "middle" class or as I'd like to fondly think of as, lower class in denial).

Uber won't work simply because there isn't an actual demographic that can substain uber even at what you consider bottom rock prices.

And just like those folks refi-ing on refis of their refi-Ed home...it's gonna crash down if folks get used to riding uber on a regular basis, without the solid income to support this.

But the difference between the economic crash down of 07-08 to what uber is today, is bankers are a hellvalot better salesman then those techies at uber.
 

Flarpy

Well-Known Member
It's brilliant. Other than competition with Lyft, Uber's number one problem is driver retention. If they loan drivers $1000, they've got them hooked. They're locked in, and will probably take another $1000 loan before the first one's paid off. A vicious cycle making drivers unable to quit.

Uber & Lyft prey on the poor.
 

lizf

Member
It's brilliant. Other than competition with Lyft, Uber's number one problem is driver retention. If they loan drivers $1000, they've got them hooked. They're locked in, and will probably take another $1000 loan before the first one's paid off. A vicious cycle making drivers unable to quit.

Uber & Lyft prey on the poor.
why would you ever take a loan when you could just get a referral bonus? duh
 
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