A ComfortDelgro taxi passes Uber and Grab offices in Singapore March 26, 2018.
A ComfortDelgro taxi passes Uber and Grab offices in Singapore March 26, 2018. REUTERS/Edgar Su/File Photo

Ride hailing service Uber is trying to further explore opportunities in its financial services business. The company on Monday announced the launch of its new division, Uber Money, which will now be responsible for all-things related to its financial products and services to help its drivers.

Uber Money, which will include a digital wallet and upgraded debit and credit cards, has been launched with the aim of helping its drivers and couriers across the world. With this new addition, drivers will now be able to access Uber Wallet, which will help them track their earnings and spending history and also manage and move their money within the driver app.

Peter Hazelhurst, who will head Uber Money, said that the initial effort will be to give its drivers access to a new mobile bank account. The new account will help drivers to get paid after completing each ride. Uber presently has 4 million drivers across the world.

Uber Money will now oversee Uber's credit card, debit card, wallet for drivers, Uber Cash and Uber Pay. Uber has been ramping up the creation of financial services for quite some time now.

Also, the Uber Money team has plans of integrating its U.S. drivers' debit cards with Uber debit account into the driver app by this year end. The company says that it will make available this feature to all its drivers globally and will also start offering 3% to 6% cash back on gas for the higher tier of Uber Pro drivers.

Stiff competition

Uber has been facing stiff competition from rival ride-hailing companies, which in the past has seen many robbing off Uber of their drivers, with lucrative offers. Uber's is under pressure to not only turn into profit and this decision to deepen focus on its financial products comes in a bid to keep drivers and riders loyal to its platform.

Uber drivers' cars are parked outside the Ministry of Transportation building during a protest in Taipei, Taiwan. Reuters

The company will soon be introducing a debit card with enhanced instant pay service across the world. The feature was already being tested by Uber in the U.S. and a few other markets, with 70% of driver payments being made instant pay.

Although Uber's aim is to bring drivers in the ambit of a cash-free transaction system, it needs to be seen how successful its move will be given that 40% of Uber trips are globally paid in cash.