Uber and Betterment Drive Together Toward Better Financial Management

This article was originally published on the Betterment Resource Center.

Today, we’re excited to announce that Uber, a leading ride-sharing platform, has chosen Betterment to help drivers using the Uber platform invest for retirement.

As the largest independent robo-advisor, Betterment can now provide the answer for hundreds of thousands of drivers using the Uber platform when they ask, “How should I manage my money?”

I’ve often used Uber’s impact on transportation as an example of how technology is improving people’s lives—like how Amazon improves online shopping, or AirBnB improves vacation travel.

It should come as no surprise, then, that Uber would turn to a leading technology-driven personal financial management service to help those who drive on the Uber platform to better manage their money.

Why Uber Chose Betterment

It’s no secret that many Americans have trouble saving for retirement. According to a study by the Federal Reserve, nearly one-third of Americans have no retirement savings or pension. With hundreds of thousands of people driving on the platform, Uber saw an opportunity to provide a choice for drivers to save for their retirement and investment goals. We’re proud that Betterment is the service they chose to meet that need.

Just as Uber is revolutionizing how people and goods move from A to B, Betterment is the largest independent robo-advisor, with over 175,000 customers and more than $5.5 billion in assets under management. Betterment has achieved what no other investment management service has done in the 21st century, which is to provide an automated investing solution—one that invests for its customers, in low-cost, passive investments, based on their timelines and goals—all while saving them taxes and offering personalized advice.

Uber recognized that its driver partners—many of whom only drive with Uber in their spare time—could benefit from an investment service that delivers unconflicted, investment advice for a more comfortable retirement—a sentiment shared by our 401(k) business, Betterment for Business.

And because people who drive using the Uber platform already understand how technology has enhanced their lives as a gateway to an alternate source of income, what better way to invest those earnings than with automated investing technology like Betterment?

To get started, drivers using the Uber platform can sign up for traditional or Roth Individual Retirement Accounts (IRAs) directly through the Uber app. In addition to creating a retirement account, drivers also have the option to create taxable accounts for other investment goals, such as major purchases (e.g., vehicles of their own) and safety net funds.

As part of our partnership, Uber also demonstrated specific technical needs that we were more than capable of satisfying. We are integrating our platform at scale to seamlessly help hundreds of thousands of driver partners access retirement savings options.

How Drivers Will Benefit

After setting up their retirement accounts, driver partners can access Betterment’s investment management and advice service in our award-winning Web or mobile app that’s as easy to use as the Uber app.

Based on their risk tolerance and when they wish to meet their goals, drivers with Betterment IRAs won’t be left to DIY investing because Betterment will invest their money automatically. Betterment offers a globally diversified portfolio of index-tracking exchange-traded funds (ETFs), with personalized advice for every customer.

With Betterment, Uber’s driver partners can benefit from convenient features that make it easy for them to automate deposits and roll over existing retirement accounts. 

Drivers can also easily sync all of their outside accounts with Betterment so they can view all of their finances in one place. After syncing, we can offer better advice around their entire financial picture with RetireGuide, our retirement planning tool. RetireGuide can help drivers retire more comfortably based on when and where they plan on retiring, as well as their current and estimated income from driving and any other jobs.

Our Customer Support team is ready and available, seven days a week, to assist and guide all Uber driver partners who sign up with Betterment.

More from Betterment:

• How to Save for Retirement When You’re Self-Employed
• IRA Calculator: Which Is the Right Type for Your Savings Goals?
• Safety Net Funds: Why Traditional Advice Is Wrong