This fall Barclaycard will launch an Uber co-brand Visa.
We don’t yet know what the benefits will look like for the card.
- It will certainly bonus Uber spend, though of course Uber is categorized as travel by several cards that bonus the broader travel category already.
- Uber already offers rewards, providing Starwood Starpoints based on spend.
- And the American Express Platinum card provides a monthly Uber credit and UberVIP status (whether Barclaycard got Uber benefit exclusivity may not become known until the current American Express benefit contract runs its course).
While Barclaycard issues mostly MasterCard products, they do have a relationship with Visa, indeed their Priceline card is a Visa and they also have the Barclaycard Visa with Apple Rewards for instance.
Uber is losing a billion dollars per quarter but the biggest co-brand credit card deals run into the billions, it would be a twist if like the airlines which flew through rough times to preserve the underlying credit card business the ultimate road to profitability for Uber rode through the banks as well.
Lyft is reportedly looking at a co-brand credit card, and the next big win will be the bank that gets Airbnb.
(HT: Doctor of Credit)
I could see the perks of getting an AirBnb card, but why would I ever need an Uber one? Is anyone that blindly loyal to them? Maybe I’m missing something here, but I can’t imagine this providing much value unless it’s something unsustainable or a no annual fee version.
I can’t a credit card will prop up the company very much. There’s just not enough people who spend enough money on Uber
Most Uber riders are your average American who just need a cheap ride home from the bar or a $30 ride tothe airport. One-off’s like you and Ben notwithstanding, Uber (and AirBnB) don’t really have that equivalent to a business traveler who spends $20K+/year flying Delta or at a $300/night hotel night for 100 night a year.
They’ll surely make some money off a co-branded credit card, but it’s not going to be some game changer for Uber like with the airlines during the recession. They’ll still need to figure out how to make a profit on their own.