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The Uber credit card got “refreshed” today, which is a nice way of saying that they completely slaughtered its value for most readers. The card will keep its cell phone insurance benefit, but new cardholders will now be earning Uber Cash instead of cash back and bonus categories are changing (existing cardholders will get the “refreshed” version in the first half of 2020). While I’ll concede that the changes “make sense” from a marketing standpoint, that’s little consolation to those who burned a 5/24 slot on a card that goes from being excellent for a no-annual-fee card to the circular file for most.
Old earning structure
Here are the old card details for those who previously opened their accounts (again, these cardholders will be switched over to the “new” version in the first half of 2020 and will receive notice of those changes soon):
- 4% back on dining
- 3% back on hotels and airfare
- 2% back on online purchases, including Uber, online shopping, and mobile payment platforms
- 1% back everywhere else
Note that the above returns are in cash back.
New earning structure
Unlike the cash back earned previously, the “new” benefits offer Uber Cash, not cash back. Uber Cash can be redeemed to your account at your leisure but will automatically be deposited every time you reach $50 in Uber Cash.
Here are the new card details:
| Card Name w Details & Review (no offer) |
As you can see, the card now offers its leading category bonus on Uber, including Uber Eats. While that kind of makes sense given that it is an Uber credit card, the truth is that you can often buy discounted Uber gift cards for at least 10% off (sometimes more), so I don’t really value this as a bonus category at all.
Dining, which offered a terrific return for a credit card with no annual fee, gets downgraded to 3% back. However, that’s a bigger devaluation than it seems: the new card terms offer rewards as Uber Cash, not cash back. That means your 3% back can only be spent on Uber and UberEATS. Again, you can often buy Uber Gift Cards at a savings of at least 10% off the face value, so you can’t really value the return here at greater than 2.7 cents. That’s a disappointing change.
While the bonus categories here still eclipse the return on many no-annual-fee cards if you really value Uber credit, the cash back enthusiasts who were excited about this card will likely be pretty disappointed by these changes.
Those looking to earn cash back with no annual fee would likely be better off with a 2-card strategy: the Costco Anywhere Visa for 4% back in gas on up to $7K per year and 3% on restaurants and travel) complemented by the Citi Double Cash for an effective 2% back everywhere (that could be transferable to ThankYou points and potentially used for even better value if you so choose in the future).
H/T: One Mile at a Time
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Why would you have burned a 5/24 spot on this??? Even under the previous structure it seems there were better options.
Cash back enthusiasts were happy with 4% back on dining and 3% back on hotels and airfare with no annual fee, no foreign transaction fees, and cell phone insurance on top of that. What no annual fee cash back card would be a better option in your opinion?
While I personally prefer to earn travel rewards and I’m OK with paying an annual fee on a card that produces more value for me than it costs, some people prefer cash over travel rewards and don’t want to pay an annual fee and/or have so many Ultimate Rewards points as to be OK with earning 4% in cash over 3x in points.
The Capital One Savor Cash Rewards card might be a good alternative for also earning unlimited 4% cash back on dining (and entertainment, 2% at grocery stores and 1% on all other purchases). There is a $95 AF but still smaller than the premium cards (fee free Yr 1). It also has travel and purchase protections & no foreign transaction fees
It’s all in the card Bonus & Fee years ago 2009 no fee so 1 card $88 on AA ORD>CDG non-stop of course ..No 5/24 or anything then.
CHEERs
Good analysis, Nick. This card was a pass for me under the old structure and is now a hard pass. Definitely not worth a 5/24 slot or even a hard pull.
You also are losing the rewards you would otherwise be earning on your Uber spend, like 3xUR.
I dont see how this card wins over the WF Propel other then dining. Most people can get 2% back with a double cash card or the like for online if thats what they want. Plus the sign on for the WF was better and its also no fee and if paired with another WF card can do even better.
basura
Are you able to transfer from Costco Anywhere to ThankYou points, when pairing it?
No.