MoneyGram shares surge after coronavirus partnership with Uber
Partnership will offer discount on digital money transfers sent to family and friends in US, Canada, Australia, UK
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Shares of MoneyGram surged 16 percent Tuesday on news it will team up with Uber to support drivers and delivery couriers during the coronavirus pandemic by offering a discount on digital money transfers sent to family and friends in over 200 countries and territories.
"We're thrilled to launch this partnership with Uber to serve everyone earning on the Uber platform – many of whom frequently send money back home to friends and family," said MoneyGram Chairman and CEO Alex Holmes in a statement Tuesday. "Our companies have significant overlap in the populations we serve, and drivers know and love the MoneyGram brand. In fact, this partnership is a direct result of customer feedback, and we're proud to provide drivers with affordable access to our global platform during this challenging season brought about by the COVID-19 pandemic."
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Anyone who earns money on Uber's platform, including the Driver app, Uber Eats, Uber Freight and Uber Works, is eligible for this discount.
"The spread of COVID-19 has been hard for everyone, and it has been particularly challenging for people who drive and deliver with companies like ours," said an Uber spokesperson. "To help those who are supporting loved ones abroad during these uncertain times, we're excited to partner with MoneyGram."
A driver and passenger wearing protective masks exit the ride-sharing pickup area in a car displaying Uber signage at San Francisco International Airport on Monday, May 4, 2020. (David Paul Morris/Bloomberg via Getty Images)
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The partnership will initially launch in the United States, Canada, Australia and the United Kingdom.
"As strong demand for our digital capabilities continues to grow, we look forward to providing discounts on all money transfers made through our mobile app and website to everyone earning on the Uber platform," MoneyGram Chief Operating Officer Kamila Chytil said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MGI | n.a. | n.a. | n.a. | n.a. |
| UBER | UBER TECHNOLOGIES INC. | 69.90 | +0.54 | +0.78% |
MoneyGram stock closed at $2.12 per share, up more than 10 percent, while Uber stock closed at $34.56 per share, falling slightly at the end of Tuesday's trading session.