- Drivers earning money through the Uber app will be eligible to get a discount when transferring money to their family and friends.
- While those in the US, UK, Canada, Australia will be able to use this service, the discount is soon to be rolled out in other countries.
- MoneyGram saw a spike of more than 10% in its stock prices following this announcement.
The global pandemic Coronavirus has catapulted various tech companies to aid those financially affected. From donating money for PPE kits for frontline workers to remitting economic impact payments, every economy is going above and beyond to help individuals and businesses bounce back from the consequences of the virus.
While the entire world continues to grapple with the pandemic, those working in the gig economy – especially in taxi service and ride hailing companies – are struggling massively.
Now, in an attempt to support drivers and delivery couriers, cross-border payment company MoneyGram announced a collaboration with ride-hailing app Uber wherein it will be providing a discount on digital money transfers sent by them to anyone in over 200 countries.
Essentially, employees working or earning money via Uber’s platform, including the Driver app, Uber Eats, Uber Freight and Uber Works, will be eligible for this discount. The partnership will initially launch in the United States, Canada, Australia and the United Kingdom followed by other countries.
“The spread of COVID-19 has been hard for everyone, and it has been particularly challenging for people who drive and deliver with companies like ours. To help those who are supporting loved ones abroad during these uncertain times, we’re excited to partner with MoneyGram,” said an Uber spokesperson.
Echoing a similar sentiment, MoneyGram Chairman and CEO Alex Holmes said:
“Our companies have significant overlap in the populations we serve, and drivers know and love the MoneyGram brand. In fact, this partnership is a direct result of customer feedback, and we’re proud to provide drivers with affordable access to our global platform during this challenging season brought about by the COVID-19 pandemic.”
Given that remittance payments will potentially see a sharp decline due to the ongoing COVID-19 and is predicted to lose almost $100bn this year, according to a report by the Financial Times, this new announcement will help economies tackle the issue better.
This move was clearly welcomed by those in the tech sector as well as users as MoneyGram’s stock prices (NASDAQ:MGI) spiked by more than 10% going from $1.47 to $2.12 right after this announcement. In addition, as reported by TechMeru on May 20, MoneyGram even revealed that a 57% digital transaction growth for Q1 of 2020.
“While no one can predict the duration of the pandemic, MoneyGram is well-positioned to play a key role in, and benefit from, the resurgence when the global economy unfreezes and people begin freely moving again,” Holmes said at the time.
Indeed, in the current unprecedented times, companies such as MoneyGram are setting an example for other firms to come forward and put philanthropy before profits.