Uber Drives Venmo Payments

delivery

delivery

You can have both your ride and take-out meal, and split the tab as well. That is, if you are a Venmo user. As the following Fortune article describes, Uber and Venmo announced the P2P payment method can be used for Uber rides and Uber Eats meal ordering and delivery service.

Two popular mobile services are moving closer together. Ride hailing service Uber said on Thursday that it was adding an option in its apps for customers to pay directly with PayPal’s Venmo service.

The feature rolling out in coming weeks will allow users to pay for food in the Uber Eats app and for rides in the main Uber app via Venmo, with money drawn from a balance left in the app or an associated credit or debit card or bank account. A Venmo user can also split the amount due among other users.

Uber is locked in a battle with its main rival, Lyft, as ride hailing apps continue to take market share from the taxi industry. Both services have long accepted Venmo rival Apple Pay in their apps. They’ve also been adding new methods of travel, investing in bike rental and scooter services.

On-demand services are a sweet spot for cross-selling and contextual commerce, given the complementary nature of many of the offerings. So the only question about Uber, Uber Eats, and Venmo setting up this partnership is: what took them so long?

Overview by Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group

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