
IPFS News Link • Transportation
Clearbanc Is a New Service for Helping Uber Drivers Get Paid
• http://motherboard.vice.comAnyone who's ever freelanced knows the biggest headache of being your own boss is trying to get paid. During my own freelancing days, a magazine once forgot to pay me until, months later, I found the invoice while in the process of invoicing them for another piece. It can be extremely stressful when trying to budget, and with the rise of the sharing economy, more and more people are now opting for self-employment and experiencing this fresh hell for the first time.
Rideshare drivers shuttling passengers for companies like Uber and Lyft are no exception, and many of them have dived into the world of self-employment with no previous experience. Now, tech startups and trying to try to bridge that knowledge gap with products specifically geared to freelancers, including Uber drivers.
"As a startup, you kind of have to focus on an individual customer set. Uber has over 1 million drivers, they're growing quickly, and they all have a similar set of needs when it comes to financial services," said Andrew D'Souza, the founder of Clearbanc, a new financial tool specifically aimed at Uber drivers. "We thought that was a logical place to start."
Clearbanc works as a kind of micro cash advance: Uber drivers link their account to Clearbanc, and at the end of each day they get the money they've earned driving transferred to a Visa debit card. There's a $2 fee for each transaction, though drivers aren't charged anything on days they don't use it (so if you want to only cash out every other day, or every three days, you'd only have to pay that $2 fee once each time you cash out). Right now, Uber drivers get paid by Uber about once a week (though the pay period is sometimes a bit longer, depending on the area), according to Harry Campbell, an Uber and Lyft driver who runs a blog on rideshare driving.
"A lot of drivers are, frankly, living paycheck to paycheck. They need this money," said Campbell. "They need the money to pay bills, loans, new car repairs, whatever it is."
Clearbanc won a coveted slot in the Silicon Valley startup incubator YCombinator's new fellowship program, aimed specifically at very-early-stage startups, and the team behind it has spent the last few weeks honing in on the Uber pay transfer as its first foray into financial services.
D'Souza said this is just the first offering from what he hopes will become a suite of financial services for freelancers and people who are self-employed, particularly in the so-called sharing economy, including a system for helping calculate and set aside tax payments.
D'Souza says he's gotten good feedback from Uber drivers so far. A trial Facebook ad campaign drew so much attention before the product was really ready that Clearbanc had to cancel it early, D'Souza said.
Clearbanc isn't the first company to identify this need: Lyft announced earlier this month it would now allow drivers to do daily cashouts if they earned a minimum of $50, for a fee of 50 cents per transaction. But will drivers actually adopt a third party app, and pay a possible daily fee, just to get their hands on their money a few days sooner?