COVERR, whose mission is to empower gig workers to achieve their greatest earning potential, announced it is launching nationally with the goal of becoming the most trusted and reliable financial partner for gig workers. Using traditional and alternative data to predict future earning potential, COVERR provides cash advances customized for gig workers. A recently closed debt facility, comprised of capital contributions from high net worth individuals from major US and international banks, top law firms and DoorDash has put COVERR in a position to provide $1 million in cash advances to gig economy workers.
@withCOVERR launches nationally to becoming the most trusted and reliable financial partner for #gigworkers
Founded in 2020, COVERR exclusively served gig economy workers in New York. Its expansion comes at a time when demand for financing solutions catered to gig workers is increasing. Previously, gig economy workers were limited to relying on friends and family for financial support, overusing credit cards or constantly dealing with the consequences of insufficient funds in their bank accounts. COVERR offers an alternative that relieves the social burdens of regularly borrowing money or depending on informal lenders. Gig workers use these funds to smooth out their earning volatility or cover business expenses such as car rental payments, a flat tire, or even gas, which could keep an Uber or Lyft driver off the road for days to weeks.
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“The term gig worker refers to all independent contractors, and the majority of financial services companies currently in the market only cater to a very small portion of that population. Drivers, for example, have historically been underserved, and at COVERR we envision a world where they and other gig workers are able to earn more and have a greater sense of financial security,” said Kobina Ansah, Chief Executive Officer of COVERR. “We initially started supporting drivers in New York state, but soon started receiving a significant volume of requests from out of state drivers across the country. I’m beyond thrilled that our recently secured debt facility will allow COVERR to make a difference in the lives of more gig workers who truly need it.”
Looking to the future, some organizations are predicting that gig workers will make up more than half of the country’s workforce by the end of 2021. With that in mind, it is increasingly important to have financial solutions that are specifically tailored to this demographic’s needs. COVERR plans to be the go-to financial partner for gig workers and grow alongside the gig economy by doubling the number of workers it serves in the next year.
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