Uber has struck a deal with one of the largest independent robo-advisors in the world to help its drivers better manage their money.
The car-ride app has partnered with Betterment to offer drivers access to traditional or Roth Individual Retirement accounts through the platform.
Betterment offers automated investing solutions that invest for customers in low-cost, passive ETFs based on their timelines and goals. The startup has over 175,000 customers and more than $5 billion in assets under management, according to its website.
Given Uber has more than 300,000 drivers, the partnership could represent a huge boost for Betterment. Betterment will offer these flexible retirement accounts at no cost and with no fees for the first year exclusively to people who drive with the Uber platform.
“We believe every American deserve a retirement plan,” Betterment CEO Jon Stein to Business Insider. “Now we are potentially onboarding hundreds of thousands of drivers to our retirement savings platform.”
The app also allows syncing of outside accounts, like external bank accounts, student loans, credit cards etc. with Betterment, so drivers can view all of their finances in one place on the dashboard.
After syncing, Betterment can provide advice around drivers’ entire financial picture. Drivers will also be able to speak with Betterment’s customer service to walk them through the investment process.
The offer will initially be available to drivers in Seattle, Boston, Chicago and New Jersey, and the ride hailing service plans on rolling out the app nationwide as part their “Driver Rewards” program.
This is how it will look on the Uber app for drivers:
People who drive using the Uber platform already have an aptitude for technology, said Betterment CEO Jon Stein to Business Insider, so adding an automated investment platform makes sense.
As Uber categorizes drivers as independent contractors rather than employees, it doesn’t have to fork over the cost for standard employee benefits like 401ks and healthcare, which has led to controversy and lawsuits in the past.