22 Apr Uber partners with Capital One
Uber partners with Capital One to give credit-card customers cheaper rides on car-sharing services
Uber partners with Capital One in order to get a greater potential ridership as it gains popularity with business travelers. Taxi disrupting start-up Uber has already formed partnerships with companies as diverse as Spotify and Samsung, so it stands to reason it would make a deal with a bank. Last June the car-service reached an agreement with American Express allowing cardholders to book rides using reward points, so it is not the first financial institution it deals with.
Capital One’s Quicksilver cardholders will get 20 percent off when they use their cards to pay for Uber fares through April 2016, the companies announced Tuesday. The reduced fare will be given as a credit on their statements, reports Bloomberg. The agreement won’t cut into the pay drivers receive, as riders will receive a credit, not a discount. The deal will also apply to surge pricing when prices soar as more people are requesting cars.
Attracting new business customers
Both companies said the deal’s primary goal was to help them attract new customers. Toward that end, all Capital One cardholders who are new to Uber can sign up by the end of June to get their first two rides that cost as much $30 per ride for free, the companies said. The move is especially aimed at attracting business customers, a market that Uber has been courting with great success.
Since Uber’s payment system requires that customer transactions be made via credit or debit card, it makes sense for the ride-hailing service to pair with a company like Capital One. Last December, Uber’s chief rival Lyft announced that it had teamed up with MasterCard, though that partnership has not yielded any programs like this one.
Capital One Financial Corporation is a U.S.-based bank holding company specializing in credit cards, home loans, auto loans, banking and saving products. Uber Technologies Inc. is an American international company headquartered in San Francisco, California. It develops, markets and operates the mobile-app-based transportation network called Uber.
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