Uber has partnered with Barclays and Visa to create its own credit card — and in lieu of traditional benefits, like cash back or travel rewards, Uber’s cards will offer a set of perks tailored for the stereotypical millennial: Amazon discounts, Netflix subscriptions, and, of course, UberEATS.
According to Buzzfeed, an Uber rep determined that millennials don’t like the current credit card reward systems, which typically involve “hoarding and then redeeming points all at once later.” Instead, they want experiences.
So, Uber’s card will focus on shorter-term, “everyday” rewards: 2% off of Uber rides, Spotify purchases, or Amazon buys, 3% off of travel expenses, and 4% off food purchases. And when users spend at least $5k, they’ll get $50 off Netflix and other “online subscription services.”
Uber’s got a few clear motives here
As the Verge notes, corporations frequently use branded credit cards as a way to “cement brand loyalty.”
As Lyft gains steam in the wake of Uber’s massive screw-ups, the leading ride-hailing service is looking for a way to tap into its cultish user base and offer incentives outside of its pre-existing tech services.
But the move will also allow the company to collect even more data on customers’ spending habits — and though Uber has stated they won’t be selling this data to third parties, it’ll give them a nice little boost at a time when shopping experiences are becoming increasingly customized.