Uber pilot lets riders pay with hard cash

UBER is expecting to broaden its customer base by allowing passengers to pay cash.

However, a violent confrontation in Sandton on Friday in which metered taxi drivers attacked an Uber driver and which resulted in Uber suspending service in the area means that introducing cash payments risks sparking more conflict with metered taxi drivers who already accept cash.

From Thursday, Uber will allow users to pay cash for rides as part of a pilot project involving 50% of its customer base, it said on Friday.

Alon Lits‚ general manager for Uber in subSaharan Africa, said the company would rely on analytics to gauge the pilot’s success.

Some of the new customers signing up for Uber will have the option to choose cash as a method of payment, while some existing clients will be able to choose cash or credit card.

Up to now, Uber, which launched in South Africa in 2013, has only accepted credit card payments.

It has implemented cash payments in Nigeria, Kenya, Egypt, India and Singapore.

“It has been exceptionally successful in emerging markets. We have also seen it be extremely successful in a market like Singapore, which has a high GDP per capita,” said Lits.

The option would assist those who do not have access to credit cards as well as those who are wary of having their credit information on online platforms.

Uber drivers will be able to see the payment method once they have accepted the trip, while the cost of the trip will be rounded

It has been very successful in emerging markets. We have also seen it successful in a market like Singapore

off to the nearest R1.

Lits added that there were mechanisms in place in case a customer was unwilling to pay‚ such as adding the cost to their next trip in order to protect drivers from those who may try to dodge paying the fare.

The experiment by the e-hailing service comes after the company announced last month that it was implementing winter fare rates in South Africa that cut prices by 20%.

Uber said it launched the cash experiment in direct response to the feedback it had received from riders and drivers.

When asked if the move was to secure Uber’s position in the market, a spokesperson said it welcomed competition.

“Competition and choice mean we all have to up our game, and constantly innovate to improve our service and quality.

“We believe our customers should be allowed more choice in the way they travel, and more choice that’s affordable. Our focus is on reliability, flexibility and opportunity,” an Uber spokesperson said.

Following the confrontation on Friday, the company said it suspended services in Sandton because the safety of its customers was its priority.

On Monday, Gauteng transport MEC Ismail Vadi was attacked by metered taxi drivers when he was announcing the processing of operating licences to Uber drivers.

Uber has 4 000 drivers in South Africa, of which 2 500 are in Gauteng.