Amex Platinum cardholders will get $200 in free Uber rides every year

Nick Sanchez
March 4, 2017

"Because we've built long-term relationships with our Platinum Card members we have a deep understanding of what they value most about their membership - access to exclusive experiences, rich travel rewards and superior service", said Janey Whiteside, a senior vice president of American Express. But those benefits will come with a higher annual fee.

In recent years, consumers have figured out that using a credit card with generous rewards, such as cash back or discounts on travel, could provide real advantages. Along with the new rewards comes a new annual fee - $550 a year, up from $450. JPMorgan created a buzz with the top-of-the-line card promotion when it displayed its $450-per-year Chase Sapphire Reserve card with a hidden joint compensate worth as much as $1,500, adding $300 in yearly travel credits and high credits for spending.

Since then, credit card companies have been in a rush to develop new rewards cards to entice these savvy consumers. "We're elevating the Platinum Card to further deliver in these key areas, while providing new benefits that enhance their lifestyles".

Companies are trying to decrease the profit margin of American Express, majorly done by JP Morgan Chase & Co and Citigroup Inc since they have their set of offers to their prestige card owners. Even with its $450 annual fee, interest in the card was so hot that Chase ran out of the metal to make the cards within days of launch.

As we recently reported in "3 Reasons You Should Switch Credit Cards", 32 million Americans haven't changed their preferred credit card company in at least a decade. Citi did take a significant chunk of American Express' business previous year by taking over the Costco credit card. Both cards are targeted at consumers who travel a lot and spend enough so that the rewards more than pay for the fee.

American Express Co, with other offers, will begin with providing the USA $200 per year on Uber rides for its Platinum cardholders to fight and protect their high-end market from JP Morgan Chase & Co and Citigroup Inc. Roughly 30 percent of AmEx's 2016 revenue came from its USA consumer card business, and unlike its major competition, AmEx makes most of its money not on charging interest but on the fees it charges merchants to accept its cards. AmEx announced an upgrade to its points program for Platinum Card customers soon after that launch, allowing five points per dollar to be earned on airfare instead of one point.

"I'm deeply paranoid about these types of competitive assaults on our customer base", said Doug Buckminster, head of the global consumer services group at AmEx.

With their introduction of Gold Card, American Express caught a hold in the market for the premium sector.

Other reports by Ligue1talk

Discuss This Article

FOLLOW OUR NEWSPAPER