Uber Rewards card revamps earning rate

Barclays will relaunch the Uber credit card today with a refreshed rewards rate, as originally reported by The Points Guy.

Previously lauded for the highest rate on dining available on a card with no annual fee, the new Uber card will instead renew its focus on rewarding Uber purchases. Here’s a quick look at the new rewards rate.

There are a few notable changes here – including a reduced rate on dining purchases, an increased rate on Uber rides and a change in overall rewards value.

Previously, the Uber Visa offered the highest rewards rate on dining purchases you could find on a card with no annual fee – making it a top choice for foodies. Now, the card has reduced earnings on restaurant and bar purchases to 3 percent. While still a high rate for a no-fee card, it does cut back slightly on rewards potential.

On the bright side, Uber rides now earn more than double what they used to. A big drawback on the previous structure was that the Uber card didn’t offer the best rate on the market for Uber rides; that is no longer the case.

See related: Uber Rewards program guide: How to earn cash toward rides and food delivery

One big downside to note here – all rewards earned on the Uber Visa will now be awarded as Uber Cash. Previously, cardholders earned flexible points that could be redeemed for statement credits, Uber Cash and more. Now, all rewards are automatically deposited into the cardholders Uber account – to be redeemed for either Uber rides or UberEATS purchases.

Other changes to the Uber card

You might have noticed that the change to the Uber card rewards rate also included removing a bonus category for online purchases. The previous Uber card was among the most rewarding in this category and also offered a $50 credit for online subscription services any year you spend $5,000. Now, in addition to removing the bonus category, the Uber card no longer offers such a credit.

Luckily, the Uber card is retaining one of its most valuable benefits – up to $600 in mobile phone protection when you pay your bill with the card.

Better for Uber riders, but less competitive for foodies

The updated rewards structure on the Uber card absolutely makes it more competitive for frequent Uber riders. The 5 percent bonus category is the highest rate you can earn on rideshares, making it easy to rack up rewards while you get around.

Unfortunately, this perk is accompanied with a reduced rate on dining purchases and more limited redemption options. If you signed up for the Uber card for its top-notch rate on dining purchases, it just lost some of its potential.