AmEx Partners with Sharing Economy Superstar Uber

June 13, 2024         By: Jane Genova

Through its partnership with global car (and sometimes helicopter) service Uber, American Express continues to expand its premium branding by hopping onto the new sharing economy cool.

On June 9th, AmEx announced that its card holders could use their rewards program with Uber in two ways.

One is cashing in points to pay for Uber rides: 2000 points for a $20 ride. That means the points become currency in real time and can be used exactly where and when card holders need them. The other option is to earn double points.

To participate, AmEx card holders have to download the Uber iOS app. Currently, the AmEx promotion is only available on the iPhone and in the U.S. This integration of a rewards program and app technology represents a nod of approval for the hot startup. It is also the first time Uber is permitting the use of credit card reward points for rides.

However, this is not the first time AmEx has allowed card holders to exchange points for taxi rides, and in New York City, it has enabled this option through VeriFone.

The added value from the Uber deal comes from being associated with such a successful player in the sharing economy. Recently Uber had raised $1.2 billion and its valuation is about $18.4 billion.

Like another sharing economy player Airbnb, Uber is controversial. However, companies such as AmEx, skilled at managing issues, can harness and leverage the momentum. There is a saying among public relations pros: “All publicity is good publicity. Just spell our client’s name right.”

In addition, criticisms that are being thrown on disruptive players in the sharing economy niche can create intense loyalty among customers. Those users can also derive a sense of being smarter consumers than traditionalists who stick with status-quo forms of transportation and lodging.

Earlier this year, AmEx took a more mundane step into diversifying its branding. It launched the EveryDay card geared towards middle-income moms.

Right now AmEx’s rewards programs are associated with more than 500 brands. The payment industry will now be on special watch for the next out-of-the-box brand the company partners with.