Barclaycard US has announced that they will be launching a new co-branded credit card with Uber on on November 2nd. This card has some surprising perks for a card that doesn't have an annual fee, so you may want to put any credit card applications on hold for the next couple days.
Rewards: What to Expect?
The Uber credit card will come with a variety of useful perks - aggregating some of the more interesting and competitive features from some competitor credit cards. For starters, you'll earn 4% on all dining purchases (including UberEats). You'll also earn 3% on travel, 2% for online purchases (which includes Uber), and 1% on everything else. Barclaycard managed to offer increased earning rates on millennials' favorite spending categories.
In addition to everyday earning, users will receive an annual $50 credit for subscription services like Netflix if they spend at least $5,000 on the card in a year. The credit is automatically applied to subscription services without any sign-up or opt-in required. We'd consider this an additional 1% cash back for your first 5k in spend, which effectively makes the earning rate on your first 5k in spend very attractive at 5% for dining, 4% for travel, 3% for online purchases, and 1% on everything else.
The other feature that caught our eye is $600 in cell phone insurance that is enabled if you pay your cell phone bill with your Uber card. This has been a staple of Wells Fargo for a bit and Barclaycard has taken notice. We go through a phone screen every 6 months or so, so this one is interesting to us.
The card details haven't been fully released, so we're not sure about any introductory rates, fees, or detailed terms and conditions. We'll do a more comprehensive review as soon as those are released.
Other Unique Features:
Barclaycard likely plans to target users on their Uber trips. This should allow for pre-filled applications using your Uber profile information. It's not a particularly exciting feature for most people, but it is a somewhat unique experience. Be on the lookout for more credit card companies integrating with your favorite brands in this way. For better or worse, it's probably going to be the new trend.
A PennyJar Perspective:
This is a very strong offering that makes the launch of the Capital One Savor card and its 3% cash back on dining outdated and noncompetitive. Barlcaycard managed to pack some high value earning rates into a no annual fee card with no real downside. While the 2% on Uber rides is a bit surprising - one would suspect that the earning rate for the flagship brand would be the card highlight, this card gives you the complete experience. If you're using Uber to get to a restaurant or the airport, Uber is going to be the lowest dollar amount expense. You're better off earning 4% cash back on your dining bill than on your Uber ride. In our opinion, Barclaycard developed a product that is perfect for a night (or weekend) out on the town.
In our minds, there really isn't an equivalent card on the market today. The closest option from an earning perspective would be the Chase Sapphire Reserve, which offers 4.5% cash back on travel and dining when your rewards are redeemed for travel. The Reserve also comes with a $450 annual fee, so these cards aren't playing the same game. If you're traveling a few times a year, the Sapphire Reserve might make sense for you, but the Uber card will be a good wallet staple for most.