Uber is launching an Instant Pay option in SF this week for its partners in order to keep pace with similar offerings by Lyft and other daily pay merchants who already cater to the rideshare industry. Here we take a look at some of the instant pay options for our community and how they differ and whether they are right for you!
Uber Instant Pay
Uber is launching an Instant Pay option for its drivers today; first in SF and then will expand to the rest of the country. Uber has partnered with Go Bank to help get drivers their pay instantly.
Here are the highlights:
- Drivers will open a GoBank account online and will be approved as long as they are Uber drivers
- No initial deposit is required
- No credit needed
- There is a $8.95 monthly fee but you get six months free, every time you receive an Uber Direct Deposit. The monthly fee is also waived if you make over $500 in qualifying deposits every month
- You can then withdraw your money from GoBank’s large number of ATMS. We suspect this is launching in SF first as a pilot till sufficient arrangements can be made with banks across the country to allow fee free use of ATM’s to withdraw money
- Right now GoBank has over 42,000 ATMS you can withdraw money from for no fees.
- There is no minimum amount that you need to accumulate to withdraw money
- No transaction or overdraft fees. However, you will have to make sure you get enough deposits in from Uber to ensure you avoid the monthly fees
Lyft Express Pay
Lyft has had its Express Pay program in place since December. It has been a huge difference maker for Lyft, helping them attract drivers over Uber. 30% of all Lyft drivers used Express Pay the first month it was launched.
This is how the Lyft program is different:
- You need to accumulate a minimum of $50 before you can make a withdrawal
- Lyft charges a 50 cent processing fee (through its partner: Stripe)
- Express Pay goes directly to your bank account via a push debit and so there is no need to open a new bank account
- The speed with which funds arrive in your bank depends on the speed with which your bank clears the funds
- You can currently use Express Pay for ride earnings, referrals and mentor payments
- Incentives, like Power Driver Bonus or Average Hourly Guarantees, are not available for Express Pay. You’ll receive those earnings as part of a weekly transfer to your checking account
DailyPay and other third party providers
There is a very real fear that companies like DailyPay that emerged to fill in the void created by Uber’s payment schedule. However now with both Lyft and Uber having their own instant pay options it will be interesting to see how these companies adapt.
Daily tries to predict your weekly earnings and deposits money in your account daily. DailyPay delivers 90% of the total fare amount upfront and holds back 10% to account for any adjustments (gas card, fare changes, etc). They also take a small commission every time they process a payment.
What drivers are saying…
We’ve had some early responses from drivers in our Pulse community. Go and check it out in the app, and add your two cents!