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The company announced that it will have a new unit called Uber Money, according to CNBC. It will develop a digital wallet and issue debit and credit cards.
One of the main tasks of the new service is to give 4 million Uber drivers worldwide access to a mobile bank to receive instant payment after each trip. The company also plans to launch full bank accounts. Investors were not very impressed with the plans - after the release of reports and news on new products, the value of Uber shares fell.
Note : any operations with shares on the exchange are associated with a certain risk, this must be taken into account (this is also confirmed by the experience of Tesla investors). To perform operations with shares of Russian and foreign companies, you need a brokerage account, you can open it online . You can debug your trading strategy using test access with virtual money .
Why do we need this company
Under pressure from competitors in different regions of the world and against the backdrop of entering an IPO, Uber management seeks to increase the company's earnings. In this regard, the availability of its own debit and credit cards will allow the company to get rid of the costs and fees incurred when accepting ordinary bank cards.
Uber’s own “instant pay” card is currently being tested in the US and several other markets. In fact, this is a free bank account with a linked card - all this works on the basis of the Green Dot fintech startup infrastructure.
In addition, the company seeks to increase the volume of non-cash payments. In many countries where Uber operates, users still prefer to pay in cash. Up to 40% of all Uber trips in the world are paid in this way. One of the company's goals is to reduce this figure.
Another feature of the card is a free overdraft of up to $ 100, aimed at drivers from emerging markets. Often, they may not have money for gas to start work, and so they will be able to fill up the tank and start delivering passengers. That is, Uber is creating for its drivers an alternative to costly “payday loans.”
When Uber Can Profit
Uber CEO Dara Khosrovshahi said the company plans to make a profit in 2021. According to the company, in the third quarter of 2019, Uber's net loss amounted to about $ 1.2 billion.
At the same time, revenue grew by 30% year-on-year and amounted to $ 3.8 billion. The quarterly revenue of the Uber Eats food delivery service grew by 64%, to $ 645 million, the service for ordering freight Uber Freight - by 78%, to $ 218 million
According to Bloomberg, after the release of Uber reporting, the company's shares fell in price by more than 5%.
It is possible to buy shares of foreign companies from Russia without opening a separate brokerage account with foreign brokers. Such shares are traded on the St. Petersburg Exchange's foreign securities market . Today, more than 500 liquid shares of leading companies in all sectors of the world economy, including all shares of the S&P 500 index, have been admitted to trading.
Useful links on the topic of investment and stock trading:
- Open a brokerage account online
- Test account with virtual money
- Software for trading on the exchange: trading terminal, mobile applications
- Structural Products
- Model Portfolios
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