No stranger to disrupting industries, Uber may be targeting financial services next.

The newly public ridesharing giant is reportedly in the throes of hiring dozens of engineers and managers in New York City to aid in the creation of financial products, according to CNBC, citing people knowledgeable of the plan. The goal is to eventually grow the NYC-based team to beyond 100 employees. 

While it's unclear in what capacity these people will be employed, the move is largely expected to help drive down the cost Uber pays in processing fees. In the company's S-1 form, which it released in April when the company filed to go public, it noted that 87 percent of Uber's gross bookings in 2018 were made through debit or credit cards--and that Uber paid $749 million in credit card processing fees in 2017.

It's possible but unlikely Uber will attempt to start a bank, however. According to the report, what is likely is an expansion into two primary areas: new "payment experiences" for riders and new systems for drivers to manage their earnings. 

If true, the move would signify an entirely new income stream for the San Francisco-based company--and it would help to diversify Uber from its main rival, Lyft

Uber's financial concerns have only grown since the company filed to go public--its S-1 form noted that the company may never be profitable. The company initially priced its shares at $45 apiece on May 10. On Monday, they closed at $42.61 per share.

Published on: Jun 11, 2019