Uber confirms major change for payments as it further abandons cashless policy – but drivers are unhappy

Uber confirms major change for payments as it further abandons cashless policy – but drivers are unhappy

The landscape of ride-sharing is evolving, and a recent shift by Uber is sparking conversations – and concerns – amongst its drivers. The ride-hailing giant is now allowing verified riders to pay for their trips directly in cash, a departure from its long-standing cashless-only policy.

This move aims to broaden accessibility to Uber's services. The company states, "Getting where you need to go should be accessible to everyone. That’s why we’re making it easier for anyone to ride, by accepting cash." This opens doors for individuals who may not have credit or debit cards, or who prefer using cash for personal finance management.

However, this new payment option is not universally available. It's currently limited to riders with verified accounts, ensuring a layer of security and accountability. Verification can be completed within the "Account" section of the Uber app.

Once verified, riders can select "Cash" as their preferred payment method when requesting a ride. At the conclusion of the trip, the rider simply pays the driver the fare amount in cash.

While Uber touts the benefits of increased accessibility, the introduction of cash payments has been met with mixed reactions from drivers. Some express concerns about the potential risks and inconveniences associated with handling cash.

Collage of a woman paying an Uber driver.

These concerns range from the practical – dealing with exact change and managing cash flow – to the more serious – the potential for disputes and the increased risk of robbery. Drivers, who previously relied on the safety and security of a cashless system, now face a new set of challenges.

One Uber driver in San Antonio, Roxie Benesch, shared her experience, noting that some passengers have already paid her in cash. While she acknowledged the importance of serving underbanked riders, she also expressed feeling more vulnerable carrying cash, particularly when driving at night. “It would be scary if a rider knew I had cash on me,” she admitted.

These sentiments are echoed in online forums frequented by Uber drivers. Many have voiced similar concerns, warning that the system could potentially compromise safety and accountability.

Another Uber driver, Sergio Avedian, pointed out that carrying significant amounts of cash could make drivers targets for crime. He referenced past incidents of taxi drivers being robbed after accepting cash fares in other cities and regions, serving as a grim reminder of the potential dangers.

To mitigate some of these risks, Uber has implemented several safeguards. Drivers are notified of cash-paying riders with a specific "Cash" badge on the ride request. This allows drivers to make an informed decision about accepting the ride.

Woman paying taxi driver.

Importantly, drivers also have the option to opt out of accepting cash rides altogether. This feature provides drivers with the flexibility to prioritize their safety and comfort level.

At the end of a cash trip, the driver is responsible for logging the payment in the Uber app, marking the ride as complete. This step ensures that the fare is properly recorded and accounted for within the system.

To further protect drivers and riders, Uber has also implemented certain restrictions on cash payments. For example, cash payments are not accepted between 11:00 pm and 6:00 am, a period when safety concerns are typically heightened.

Additionally, cash payments are not available for Uber Reserve, a service that allows riders to schedule trips in advance. This limitation helps to streamline the reservation process and maintain security for pre-booked rides.

Passengers who choose to pay with cash also forfeit the ability to change their destination or add stops mid-ride. This restriction is likely in place to prevent potential disputes and ensure that the final fare can be easily calculated.

Uber logo on a car parked on a city street.

While in-app tipping is not directly supported for cash trips, riders are still welcome to tip their drivers in cash if they choose to do so. This allows riders to show their appreciation for good service, while still adhering to the cash payment system.

On the rider side, Uber encourages passengers to carry smaller bills to facilitate easier transactions. This helps to minimize the need for drivers to carry large amounts of change.

If a rider overpays their fare, the excess amount is automatically added to their Uber Cash balance. This Uber Cash can then be used for future trips or food orders through Uber Eats.

However, failing to pay the full fare results in a temporary block on the rider's account. The outstanding amount must be settled within the app before the rider can book another Uber ride.

The introduction of cash payments places Uber in closer alignment with many of its competitors, who have long accepted cash in cities around the globe. This move reflects a growing recognition of the importance of offering diverse payment options to cater to a wider range of riders.

In addition to the cash payment option, Uber is also experimenting with other features aimed at providing riders with more predictable and affordable fares. One such feature is a new pass that allows riders to lock in the fare for a specific route, such as their daily commute. This helps riders avoid surge pricing and budget their transportation costs more effectively.

Sachin Kansal, Uber’s chief product officer, explained, "What we have heard very clearly from users is that there's a lot of unpredictability. There's a lot of concern about things just being expensive." This new pass aims to address those concerns by offering riders a more stable and predictable pricing structure.