Innovative "Deposit Attraction"! Robinhood launches "Cash Express," allowing users to access cash without visiting ATMs

This move emulates the exclusive services of high-end wealth management institutions, aiming to attract millennial and Gen Z clients.

Written by: Bao Yilong

Source: Wallstreetcn

Brokerage Robinhood, known for attracting young investors, is now turning its attention to a non-traditional banking business: cash delivery to your door.

According to media reports on November 13, Robinhood is launching a cash delivery service in New York, USA, through a partnership with food delivery app Gopuff. Customers can withdraw cash from their Robinhood bank accounts and have it delivered directly to their doorstep by a dedicated courier.

Robinhood is betting that its millennial and Gen Z customers will gladly embrace a paid cash delivery service, just as they would order pizza. This service will be expanded to major cities such as San Francisco, Philadelphia, and Washington, D.C. in the coming months.

According to the service terms, users need to pay a fee of $6.99 per delivery, which can be reduced to $2.99 if their Robinhood account assets exceed $100,000.

This new service is part of a series of plans announced by Robinhood CEO Vlad Tenev in March this year. The goal is not only to provide convenience but also to emulate the exclusive perks offered by high-end wealth management institutions to affluent clients, using novel approaches to retain and attract its core user base.

Service Details and Security Considerations

To use this cash delivery service, customers must meet specific requirements.

They need to be Robinhood Gold subscribers (monthly fee of $5) and set up at least $1,000 in monthly deposits to their Robinhood bank account. During the initial phase, the service will operate daily from 9 a.m. to 7 p.m.

To address potential security concerns, Robinhood and Gopuff have designed multiple safeguards.

Gopuff co-CEO Yakir Gola stated that customers must provide a verification code when picking up the cash and must receive it directly from the courier, rather than having the package left at the door.

In addition, the courier will receive a sealed paper bag and will not know whether it contains US dollars, diapers, or any other product sold on the Gopuff platform.

Gola added that Gopuff already has experience delivering expensive items, such as Beats Bluetooth headphones and $200 bottles of tequila.

Emulating High-End Banks to Attract Young Customers

In an era of increasingly popular digital payments, launching "express cash delivery" may seem counterintuitive.

However, Deepak Rao, Vice President and General Manager of Robinhood Money, said that this service precisely meets users' potential needs. He pointed out:

From burritos to medicine, everything can be delivered to your home. Why not cash?

He believes this solves one of the last remaining reasons users might need to visit a bank.

The deeper motivation behind this move is to emulate the luxurious experiences provided by traditional banks and high-end wealth management companies to high-net-worth clients, and "transplant" them to a younger customer base.

Other benefits previously promised by Robinhood include discounted helicopter experiences and opportunities to purchase tickets to the Metropolitan Museum of Art's Met Gala charity dinner. The company hopes to keep up with the ever-changing needs of its young clientele through these creative services.

Cash delivery is just the latest example of Robinhood, under CEO Vlad Tenev, not being afraid to "push the limits."

This year, the company also expanded event contract trading on its platform, allowing users to bet on the outcomes of events in entertainment, politics, and sports. This service, launched in partnership with Kalshi, has sparked some controversy in the industry. Critics argue that such contracts blur the line between investing and gambling.

Whether it's launching controversial event contracts or today's innovative cash delivery, it is clear that Robinhood is on a path to expand the boundaries of financial services, maintaining its unique positioning and growth momentum in fierce competition.