Embedded lending and what it means for the ride-sharing industry

The ride-sharing industry is booming as the gig economy continues to flourish. There is huge potential for emerging and successful businesses to embrace embedded lending solutions to power their future growth.

By integrating these financial solutions, companies can empower their drivers and strengthen their value proposition, positioning themselves as leaders in a highly competitive market.

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The embedded lending opportunity for ride-sharing companies

Thriving ride-sharing companies have an opportunity to diversify by offering financial services such as capital solutions, through their app, to help their drivers invest in operations and continue staying loyal to the app.

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Uber and Lyft already provide financial services to their drivers. For example, the Uber Pro Card offers rewards and options for small loans, based on driver performance, while Lyft’s branded debit card gives drivers instant access to (and interest on) earnings and cashback on petrol.

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What can ride-sharing brands learn from embedded lending in the food delivery and quick-commerce industries?

The success of embedded finance and lending in food delivery and quick-commerce apps gives us an idea of how similar benefits could be enjoyed in the ride-sharing industry, with brands like JustEat and FoodHub leveraging the lending ecosystem to improve customer experience, deepen relationships and empower future investment and growth.

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Funding solutions offered through such apps help restaurants manage cash flow and staffing during seasonal periods, cover increased operational costs, and fund expansion plans. Meanwhile, food delivery drivers feel more empowered through greater financial inclusion, faster access to finance and in-app benefits.

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‍Glovo, a leading delivery app connecting customers with restaurants, pharmacies, grocery stores, and more, is a great example of embedded lending’s impact in this space. YouLend partnered with Glovo in 2023 to implement embedded lending into its platform, helping the brand to deliver a revenue-based, flexible financing programme for customers across Spain.

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Due to our partnership, Glovo’s restaurant partners can apply for funding from €1000 to €1 million through their existing Glovo business accounts, repaying loans as a percentage of future card transactions, enabling them to access the funds they need when they need them most.

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Key benefits of embedded lending for ride-sharing companies

For the ride-sharing industry, embedded lending presents a transformative opportunity for both platforms and drivers, strengthening business models and enhancing financial inclusion. By integrating lending services directly into their apps, ride-sharing companies can unlock a range of strategic advantages:

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Benefits for platforms like Uber, Lyft, Bolt:

• Stronger driver retention: Offering drivers access to working capital, rewards, and other financial benefits helps reduce churn — with retention rates increasing by up to 75%.
• Increased platform loyalty: In a competitive market, financial support makes a difference. 85% of drivers return for a second round of funding when supported, strengthening long-term loyalty.
• New revenue opportunities: Platforms can earn commission on lending, attract new driver sign-ups, and fuel their growth flywheel by embedding lending directly into the driver experience.

Benefits for drivers and end-customers:

• Faster access to capital: Drivers can access working capital directly through the ride-sharing app — no lengthy paperwork or bank visits required.
• Greater financial inclusion: Many drivers come from communities underserved by traditional banks. Integrated lending can use their financial history from within their ride-sharing app to build a profile and offer greater access to capital.
• Enhanced earning potential: With funding, drivers can invest in vehicle upgrades, increase their availability, and ultimately boost their earning capacity. It can also help drivers manage day-to-day cash flow — whether it's covering fuel, maintenance, or personal expenses between payouts.

Summary

Embedded lending is a powerful unlock for ride-sharing platforms — boosting driver retention, increasing loyalty, and opening new revenue streams. By offering drivers fast access to capital and tailored financial support, platforms can empower their workforce, especially those traditionally underserved by banks.

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The result? More engaged drivers, better customer experiences, and a stronger competitive edge in a hyper-competitive market. It’s a win-win for platforms, drivers, and end-users alike.