UBER: Afterpay Partnership Targets Gen Z Users — But $200M IPO Fallout Still Lingers

Court: N.D. California

Case: 3:19-cv-06361

Uber UBER is aligning with buy-now-pay-later (BNPL) leader Afterpay in Australia and New Zealand, marking a strategic move to win over younger, credit-averse users. While the partnership aims to strengthen Uber's wallet ecosystem, the company continues to face the overhang of its $200M IPO-related investor settlement.

🛍️ Uber Embraces Afterpay to Woo Gen Z

• Scope: Uber and Uber Eats customers in Australia and New Zealand can now use Afterpay as a payment method.
• Target Audience: The move directly appeals to Gen Z and millennials, many of whom are moving away from credit cards due to financial stress and safety concerns.
• BNPL Benefits:Offers flexible payments for rideshare trips and food deliverySeamlessly integrates into Uber WalletSupports Uber’s growing platform strategy by enhancing in-app transaction options

📊 Strategic Context

• BNPL Trend: Younger consumers increasingly favor BNPL platforms over traditional credit. Afterpay is capitalizing on this by embedding itself into daily lifestyle services like Uber.
• Regulatory Watch: The Australian Securities and Investments Commission (ASIC) has proposed stricter regulations on BNPL services, including potential amendments to the Credit Act.
• Platform Synergy: Uber continues evolving its app into a “super app” — combining rideshare, delivery, finance, and now deferred payments.

🧾 But $200M IPO Legal Overhang Remains

Despite innovations in payments and partnerships, Uber is still navigating the aftermath of a major lawsuit related to its 2019 IPO.

📆 Timeline Overview

• May 9, 2019: Uber IPO raises $8.1B, pricing at $45/share
• August 8, 2019: Reports $5.2B Q2 loss; stock plummets 20%
• October 4, 2019: Investors file a lawsuit

💼 Allegations Include

• Bypassing local laws in countries like Tanzania, Brazil, India, China
• Overlooking major safety threats, including:5,981 sexual assaults107 crash deaths19 fatal assaults
• Misleading investors with a “growth-first” strategy that hid structural flaws

💰 Investor Update

• Settlement Amount: $200 million
• Focus: Misleading financial disclosures and regulatory evasion pre-IPO

👉 You can check more information about it and file for a payout HERE.

Uber’s tie-up with Afterpay could strengthen customer loyalty and boost wallet usage in key markets, but the company’s controversial past continues to weigh heavily as it pushes toward long-term investor trust.