You might soon be able to pay cash for your Uber
Uber launches cash payment experiment in South Africa
If you haven’t signed up with Uber yet because you don’t own a bank card that allows the sorts of transactions previously required to be able to register with the Uber app, then this might come as good news to you:
Uber has launched a cash payment experiment in South Africa. South Africa will become the first country in Uber’s global network to experiment with cash payments across five cities simultaneously.
Alon Lits, General Manager for Uber Sub-Saharan Africa, says, “We’re always looking at how we can make it easier for people to benefit from the convenient, safe and affordable option of taking an Uber. This experiment will help us understand whether riders and driver-partners welcome the choice of paying by cash or card. As before, all trip details are electronically recorded and riders will always be able to pay by debit or credit card if they prefer.”
“Offering cash as an alternate option has proven to be very successful for Uber. The introduction of cash in Singapore for example, had an extremely positive response and this is a country that has a substantial credit card penetration and very high GDP per capita,” Lits says.
According to Uber, cash payments currently make up 65% of all transactions in South Africa, despite how common credit cards are. The experiment helped Uber discover three simple ways that cash could make it a little easier for everyone who needs a ride in South Africa:
- Removing the fear factor for first time riders
Many people still have concerns about credit cards. Every South African should have the freedom to choose the way they travel and cash is a truly inclusive way to let everyone move around their city reliably and affordably.
- No credit card? No worries.
Cash opens doors for more South Africans to take their first ride, and have a quality experience with Uber, whether they are a busy Mom, a university student without a credit card or a senior citizen who’s more comfortable using cash.
- More riders means more trips for drivers
When more riders choose Uber and there is a higher demand for trips, driver-partners will spend more of every hour moving people, less time waiting around and so get more money.
Also read: Introducing Uber’s electric rides: UberGREEN
So, why South Africa?
Uber states that it selected South Africa for this experiment because the country provided the right environment to try out a cash payment option amongst a sizeable and sophisticated rider and driver-partner community.
Cash is a dominant payment method in Africa and this experiment will give Uber insight into how riders and driver-partners adopt and use a mix of cash and electronic payments, how consumer behaviour changes and what Uber can do to build a better product and provide a better experience. The lesson learnt here in South Africa (and across Africa) could have implications for the business across the world. Uber is imagining, innovating and developing smart solutions in Africa which could to be implemented globally.
Lits added that “The interest in South Africa has been amazing, and we are excited to experiment with cash payments on the Uber platform. Riders in South Africa already have access to reliable, convenient and safe transportation and this cash experiment opens up the Uber platform to even more people.”
Cash is an open-ended experiment so not all riders will see this additional payment option right away.
Source: Uber