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Business Operations Business Models

How Does Dave Make Money (Business and Revenue Model)

The Dave app business model

How Does Dave Make Money?
Here’s what you should know:
  • What is Dave, and how does Dave work?
  • How does Dave make money?
  • Membership Fees
  • Cash Advance (Express Fees)
  • Dave Banking (interchange fees, out-of-network ATM fees)
  • “Side Hustle” Leads
  • Accepting Tips
  • Dave’s profit and revenue
  • What is the Dave business and revenue model?
  • Dave’s funding and market cap

How does Dave (app) make money? Here is a full, in depth, breakdown of their five (5) revenue streams and the different products and services they offer, as well as the Dave (app) business model, their year over year revenue, and how Dave (app) works.

What is Dave (app), and how does Dave (app) work?

Dave (app) is a banking service that allows users to bank, borrow, and more in a modern way.

Founded in 2016 by Jason Wilk, the Dave app began trading on the NASDAQ on January 6, 2022, under the ticker symbol “DAVE”. Now, Dave has more than 10 million members registered on the Dave app.

How Dave (app) works is: To use Dave, users must first “Join Dave” by either downloading the app via the App Store or Google Play; or registering through their website.

Once joined, Dave requires all members to pay a $1 monthly fee which will give them access to all of Dave’s various products and features they have to offer.

Some of Dave’s competitors include Chime, Earnin, Varo Money, Ally, Betterment, Acorns, SoFi, Robinhood, Stash, and other challenger banks.

Dave App in Apple App Store | Dave Business Model | How Does Dave Make Money? | How Does Dave Work?
Source: Apple App Store | Dave

How does Dave (Dave App) make money?

To date, Dave has more than 10 million members on the Dave app. Of which, over 6 million of them have used at least one of their current products according to page 5 of Dave’s 2021 Form-10K.

So how does Dave make money off of all those members? As well as the ones using their products?

Below is a breakdown of how much money Dave (app) makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 5 ways of how Dave (Dave App) makes money (in 2022):

Dave (app) has a revenue model that makes money in five (5) ways – membership fees, express fees, transaction fees, “Side Hustle” leads, and tips from its users.

#1. Membership Fees

Dave makes money by charging all of its users a monthly membership fee. Which gives them access to all of their products and features like cash advances, building credit, Dave Banking, their “Side Hustle” feature, and more.

As noted above, Dave now has more than 10 million registered members on the Dave app. Which they collect $1 per month from each of them.

Dave Membership Fee:

  • $1 per month
Dave Membership Fee | Dave Business Model | How Does Dave Make Money? | How Does Dave Work?
Source: Dave

#2. Cash Advance (Express Fees)

Dave also makes money through Extra Cash. A Dave product that offers its users cash advances.

Now, while their cash advances are free; they make money from the users who choose the Express option which gets them their cash quicker (within 8 hours, rather than 3 business days).

Users can borrow between $5 to $250 and the amount of the Express Fee is determined by how much money the users advance is. Which you can see below.

Dave Cash Advance Fee:

  • $1.99 to $5.99 depending on how much money a user wants to cash advance

Note: Cash advances are free. Express is optional.

#3. Dave Banking (interchange fees, out-of-network ATM fees)

In addition to Dave membership fees and express fees, two (2) other fees Dave makes money off of are interchange fees and out-of-network ATM fees. Which, in 2021, generated roughly $10.8 million or 7% of Dave’s total revenue.

These fees are a part of Dave Banking, another one of the company’s products.

Dave Banking Fees | Dave Business Model | How Does Dave Make Money? | How Does Dave Work?
Source: Dave

#4. “Side Hustle” Leads

Another Dave product, Side Hustle, is a feature that helps users earn extra income by finding them gig work.

How does Dave make money from this? Dave gets a referral fee (commission fee) every time Dave user submits a job application to a partnering gig economy employer through Dave’s “Side Hustle” Portal.

According to page 7 of Dave’s 2021 Form-10K, “members have submitted one million job applications through [Dave’s] Side Hustle product and generated $157 million in income for to supplement [members] income.”

Note: It’s unclear how much money Dave makes per submitted application.

#5. Accepting Tips

Lastly, Dave also makes money by accepting tips from its users.

The way it works is; after a user is done choosing the loan amount they want, Dave will then give the user a chance to leave an optional tip between 0% and 25% of the loan amount.

Dave’s profit and revenue

In 2021, Dave (app) reported $153 million in revenue.

Note: Because Dave Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Dave’s publicly released financial reports, including annual reports, through Dave’s investor section on their website.

What is the Dave (Dave App) business and revenue model?

Dave (app) makes money through a few revenue models that they combine within their company, they are:

  • Subscription based business model
  • Fee-for-service (FFS) business model
  • B2B2C (partnerships) business model
  • Commission based revenue model
  • Pay what you want (PWYW) revenue model

Dave’s funding and market cap

According to Dave’s Crunchbase profile, Dave (Dave App) has raised $486.3 million over 9 rounds and has a market cap of $1.11 billion as of May 2022.