Ever have a job that you only got paid once a fortnight, or even worse, every month? It’s both good and bad. The longer your pay cycle, the better you become at managing your money, knowing it needs to last. In a perfect world, we’d all have plenty of savings, and not need to be stressed about how long it is until our next payday. Unfortunately, for most of us, that’s not the case, and that’s one of the reasons so many of us take up a second job, like rideshare driving.
Drivers driving for Uber get paid on a weekly basis. In Australia, it’s on a Wednesday that the payment normally hits drivers’ accounts. Recently, Uber has introduced a new service called Flex-Pay. Flex-Pay allows drivers to be paid at any stage during the week that they choose, even daily. Drivers can request, through the app, a payout of all earnings accrued since the start of the pay week (Monday at 4am). The earnings are then transferred immediately, hitting your account in 1-2 business days.
Flex-Pay has been around in the US for a bit longer, and there, it is much more instant. Drivers can request to have a debit card issued to them, from Uber, which means that they can have instant access to the funds as soon as a payout has been requested. Many people would see this as a great thing to have, but is it really? My theory is this, when you’ve got such an option, it is great for those who need that immediate access to cash, but it’s likely to introduce some additional competition. It’s pretty attractive to be able to get a job where you can get paid on demand, so attractive that it will act to bring on new drivers, increasing the amount of cars on the road, and reducing the amount of rides each driver will be providing. It’s a brilliant move by Uber, because of it encouraging more drivers to join the ranks, but I’m not convinced it won’t be without detriment to existing drivers earnings.
I’d be surprised if Australia doesn’t see the Uber issued debit cards in the near future, and if I’m correct, existing drivers may see some decline in trip requests, albeit probably not by a huge amount.What are your thoughts?