Uber drivers often have to wait for up to two weeks to get their payments. Most have trouble paying for their expenses on this payment schedule. The driver has to fuel the car. Then he has his own personal expenses.
So many Uber drivers want the company to pay them every week or even better, every day. One entrepreneur from Yukon saw a business opportunity in this challenge. He has launched a banking service app for Uber drivers called Clearbanc.
Clearbanc advances money to Uber drivers based on their average earnings
Clearbanc allows Uber drivers to access the money in their Uber account everyday. In return, the Uber drivers have to pay Clearbanc for each day they used the app to get access to their funds.
What the company basically does it, it advances the money to the drivers and collects it from the driver when he gets his payment from Uber. The driver pays the company a small fee for giving him the money in advance.
The company calculates how much money a Uber driver generates on an average on a weekly basis and it transfers that money to the driver.
App will enable Uber drivers get their money earlier
Right now, if a customer prefers to pay the driver by money transfer through the Uber app, that money does not go to the driver. It goes to the company (Uber) first and they pay it to the driver which is a week or two down the line.
Using the app is very simple. All you have to do is connect your Uber account to the service, confirm your home address. After that, every time you ferry passengers, you get paid by Clearbanc.
Clearbanc says their service will appeal to Uber drivers because it allows them to generate a cash flow.
Like this, you can get up to $1000 without any interest- just a fee for using the service. The app will even calculate your income tax and hold the tax money for you, so that at the last minute you don't have to ask anyone for a loan.
Clearbanc backed by Y Combinator
The company was provided with seed capital ($12000) by Y Combinator which has also financed companies like Airbnb. The team behind Clearbanc had 8 weeks to design and launch the app which they did.
According to Ben Sanders, the eventually want to expand the app to all freelancers. More than 50 million people have a variable income in the US. As of now, the service is available only in the US. But the team is trying to expand the service to Canada.