[wjnc]

"“I’d say the cost is greater than the benefit for your average driver,” - Isn't that the point of this scheme, that they target non-average drivers, ie those with low credit scores that would be unable to drive otherwise.

With regards to the figures at the end of the article. If Uber pays for insurance and repairs, it seems not a too prohibitive deal. If not the interest rates are well above 20%. Seems pretty sweet (for Uber).

But then again, a market rate of 20% for those without credit score isn't much worse that a credit card rate. And the LA-example comes through well above minimum wage.

[MisterBastahrd]

You can do almost anything else at a W-2 job and make more money with less responsibility and risk. Your credit card rate comparison is absurd. You don't ever have to carry a balance with a credit card. You have no choice with a car.

[aoeuasdf1]

W2 jobs are not comparable. Driving for uber is flexible - you can drive whenever you want, for however long you want each week. Obviously that value will come at a lower price point for wages.

[wjnc]

I was trying to do ballpark-comparisons. CC-rates are generally thought of as high-but-not-prohibitive. So being in the range of een CC-rate on first guess would land you in high-but-not-prohibitive-land. Totally right that the duration of an average debt is massively different, although I expect there to be many people that constantly roll-forward their CC-debt.