Innovative "savings" method! Robinhood launches "Cash Delivery," allowing users to avoid going to ATMs

The brokerage firm Robinhood, known for attracting young investors, is turning its attention to a non-traditional banking service: cash delivery.

On November 13th, media reports indicated that Robinhood is launching a cash delivery service in New York, in partnership with the delivery app Gopuff. Customers can withdraw cash from their Robinhood bank accounts, which will be delivered directly to their door by a dedicated person.

Robinhood bets that its millennial and Gen Z customers will embrace the paid cash delivery service just like ordering pizza. This service will expand to major cities such as San Francisco, Philadelphia, and Washington, D.C. in the coming months.

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

This new service is part of a series of plans announced by Robinhood CEO Vlad Tenev in March this year, aimed not only at providing convenience but also at mimicking the exclusive perks offered by high-end wealth management firms to affluent clients, in a novel way to retain and attract its core user base.

Service Details and Security Considerations

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

They need to subscribe to Robinhood Gold (monthly fee of $5) and set up a minimum deposit of $1,000 to their Robinhood bank account each month. During the initial operation phase, service hours will be from 9 AM to 7 PM daily.

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 their cash and receive the cash directly from the delivery person, rather than having the package left at the door.

Additionally, the delivery person will receive a sealed paper bag, and they will not know whether it contains cash, diapers, or any other products sold on the Gopuff platform.

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

Mimicking High-End Banks to Attract Young Customers

In an era where digital payments are becoming increasingly popular, launching a "cash delivery" service seems counterintuitive.

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

Everything from burritos to medications can be delivered to your home. Why not cash?

He believes this addresses one of the last reasons users might need to go to a bank.

The deeper motivation behind this move is to mimic the luxurious experiences offered by traditional banks and high-end wealth management firms to high-net-worth clients and transplant them to a younger audience.

Other benefits previously promised by Robinhood include discounted helicopter experiences and opportunities to purchase tickets for the Met Gala charity dinner at the Metropolitan Museum of Art in New York The company hopes to continuously keep up with the changing needs of its young customer base through these innovative services.

Cash delivery is just the latest example of Robinhood, under the leadership of CEO Vlad Tenev, not shying away from "pushing 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 is the controversial event contracts or the now innovative cash delivery, it is clear that Robinhood is on a path to expand the boundaries of financial services to maintain its unique positioning and growth momentum in a fiercely competitive landscape