Just when we thought that it will take a while for Uber Technologies Inc. to recover from the various drawbacks it has faced in the last year, the company has made an announcement about a new venture. The astonishing part is that this new venture is nowhere related to improving the services of the company or the workplace culture. Yet it is a smart move as through this venture, the ride-hailing giant will promote its own business. Earlier this week, Uber announced that it has collaborated with Barclaycard to come up with the Uber credit card. Both these companies have come together to give tough competition to well-established companies in this market.
The launch of another brand of credit card is not surprising as currently the U.S. economy is bombarded with a number of similar ventures. In order to promote their services, various major airlines and hotel chains have introduced co-branded credit cards. Such credit cards provide exclusive benefits to their customers. But for the first time, a ride-hailing company has come up with a co-branded credit card. It seems that this move is in order to promote people to give preference to Uber over other competitors. The attractive offers it will provide may end up appealing people once again.
What will the Uber credit card offer?
The Uber credit card in partnership with Barclaycard will be available for its supposed customers by this fall. According to the news first posted on the Wall Street Journal, it will be a Visa card. The announcement regarding this partnership was first made last Friday during an earnings call of Barclays. After this announcement, there are rumors that Uber’s rival Lyft is also in talks to introduce its own co-branding credit card. There has been no confirmation about further details yet. But sources close to the rival seem quite confident about this information.
Uber has been in the news for its downfall due to the various troubles it faced in the past few months. This venture seems like the first productive step the ride-hailing giant is taking to recover the damage. The Uber credit card is a great opportunity for the company to generate revenue directly from it. Apart from this, a co-branding credit card with Barclays will add to the reputation of the company. This will help build brand loyalty as well. If a person has an Uber credit card, he will instinctively give first preference to the services of this company.