Ridesharing services have exploded in popularity over the last decade. Here in Canada, these services are keeping people on the move in major cities—and even some smaller cities where they’re available.
For those looking to apply for a credit card, taking into consideration rewards like cash back for transportation and other benefits can go a long way to offsetting the cost of ridesharing services.
How Ridesharing Services Work
Ridesharing services such as Uber and Lyft are often thought of as flexible alternatives to cabs or buses. They also save users the hassle of relying on friends or family members for a ride.
Users download the Uber or Lyft app to request a ride, either booking in advance (in some areas) or requesting a vehicle immediately. They select the pickup and drop-off locations and can use the app to track exactly where their drivers are and when they are scheduled to arrive. Drivers generally use their own personal vehicles—rather than taxis or other registered vehicles—to provide rides.
The cost of the ride can vary depending on the time of day and location. Unlike taxis, ridesharing services aren’t as highly regulated, which means their pricing also isn’t regulated. Sometimes, ridesharing services might be less expensive than taxis, but since they can change their pricing based on demand, there are times when they may be significantly more expensive. But using Uber and Lyft can earn someone cash back on those costs if they have the right credit card.
Earning Cash Back with Credit Cards
Many cash back credit cards offer rewards on categories of purchases, including ridesharing services. For people who use them regularly, a credit card that offers cash back on Uber or Lyft could provide useful benefits. For example, the card might offer five times the rewards back for transit, including ridesharing services.
There are often additional bonuses offered when applying for a credit card, including welcome bonuses that could give riders additional cash back. On the flip side, some cash back credit cards have annual fees or higher interest rates, so it’s important to compare the pros and cons of each card before coming to a final decision on which one to apply for.
Also, cardholders should consider such things as how frequently they use ridesharing services, whether they prefer Uber or Lyft (or if they use both), and if there will be travel in their future. If they use these companies enough, looking for a cash back credit card with ridesharing as a reward category would be ideal. Users should also double check that ride sharing services are included in the transportation category or are listed specifically in the agreement.
Benefits of Using Ridesharing Services
Using a ridesharing service can save cardholders money when travelling. Opting for Uber or Lyft instead of renting a car can spare the travel budget, enabling more money for fun activities. As a bonus, ridesharing eliminates the stress of driving in an unfamiliar place.
Ridesharing also eliminates the worry of learning the transit system in a new city and being limited by the location of transit stops and frequency of rides.
For those who don’t require a vehicle for daily use while travelling, Uber and Lyft are flexible options. And, if the optimal credit card has been applied for, cardholders can earn cash back for utilizing these services.
Contact Information:
Name: Sonakshi Murze
Email: Sonakshi.murze@iquanti.com
Job Title: Manager