Uber might be one of the most valuable companies in the world and there is no doubt that the taxi hailing app has completely revolutionised an industry on its own, however, over the years there have been plenty of issues with drivers who sign up for it. In a new move, the company has teamed up with a financial planning robo-adviser named Betterment in order to provide drivers with financial planning strategies so that they can invest with ease and create a retirement fund.
A report on WIRED states, "Today, the world's biggest ride-hailing service teamed up with Betterment, a so-called robo-advisor that gives people a simple way of investing and managing money online. Now, Uber drivers can readily use Betterment to invest money for retirement. Uber drivers in select places-Seattle, Boston, Chicago and New Jersey-will soon see a new widget inside their Uber apps where they can open an IRA account, and a nationwide rollout is planned for later this year. The first year of service is free for Uber drivers, Betterment says, and afterwards, the wealth management company charges its regular fee-a percentage of assets under management. That's about 0.25% a year on average, which is less than the fees typically charged by traditional financial advisers. The two companies have not disclosed all the details of their arrangement,"
However, it needs to be pointed out that although it might be touted as a retirement fund it is quite different fro a traditional retirement since Uber will not contribute towards it at all and it is doubtful whether this move would be able to appease the drivers, who often claim that they get a raw deal. The report added, "but Betterment confirms that Uber will notprovide matching funds when drivers move money into their investment accounts. In other words, any money that goes into an account will have to come from the driver."
