Indian consumers force Uber to opt for cash payment

The US based company changes in policy for the first time in the world to allow cash payment

GN Bureau | May 12, 2015


#Uber   #taxi-hailing   #Hyderabad   #cash payment   #credit cards  

India is a different kind of an economy and global companies have been reinventing themselves to do business in the country. Now, the taxi-hailing service provider Uber has gone for cash payment option, a global first for the US-based company.

The cash payment service is being launched in Hyderabad. Globally, it accepts payments using credit cards. In India, customers can pay for rides using Paytm's mobile wallet as well. The cash option will be rolled out gradually over the next few days, the company said.

According to Uber the new payment service will help it gain a deeper understanding of consumer behavior in India and usage trends to help develop more robust payment options. "This is an experiment and a global first for Uber across our 300-plus cities. We have worked hard to create a seamless cash payment option that is truly Uber," it said.

Users would need to choose the 'Cash' option, take a ride and pay the driver directly in cash at the end of the trip. However, users will not be able to make part payments on cash trips with their Paytm wallet.

There would be no booking fee or additional charge to riders.

Over the last few months, Uber has introduced a number of features like SOS and send status features for customers in India. Last month, it had launched an aggregator service to book auto rickshaws for traveling in Delhi, where customers could pay the fare in cash.

Meanwhile in the US, the company is in talks to raise around $1.5 billion in financing after raising a total of more than $2 billion from investors in June and December last year, which could value it at $50 billion, or even higher.

Uber Technologies has also welcomed Filipino government’s regulations classifying app-based taxi services as public utility vehicles, calling the move a historic one.

A post on Uber's website quoted David Plouffe, senior vice president of policy and strategy, as saying the release of the guidelines makes the Philippines "the first country to create a national dedicated framework for ridesharing."

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