Ride share giant Uber has announced it will begin accepting cash payments for selected services from 16 July, marking a major shift for the app that helped move the taxi industry away from cash.
Uber said the change will “better serve passengers” who prefer using cash.
The NSW Taxi Council said it has “concerns” around passenger safety.
Here is what you need to know about the changes.
Cash
Launched in 2010 in San Francisco, Uber (then UberCab) transformed the global taxi industry by putting the booking and payment process onto a smartphone.
Now, Uber will bring part of that system full circle, allowing passengers to pay cash for eligible trips after successful pilot programs in Launceston, Tasmania, and Bunbury, Western Australia.
Drivers can choose to accept cash trips by opting in through the app.
How it works
Booking an Uber will remain largely the same, except riders can select cash as their payment method before requesting a trip.
Payment is still made at the end of the journey.
If a passenger does not have the exact fare, the driver will accept the cash they have.
Uber says the remaining amount will be refunded to the rider as Uber credits, with the difference deducted from the driver’s Uber account.
Riders can also split their payment, paying part in cash and the remainder through the app.
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Uber says all of its existing in-app safety features, including GPS trip tracking and customer support, will remain in place for cash trips.
Roughly 15% of transactions in Australia are still made with cash, according to the Reserve Bank of Australia.
Queensland
Queensland will not be included in the rollout. Uber has not given a reason for its exclusion.
Cash payments will not be available for intercity trips, courier deliveries, Uber Pool or Uber for Teens. Riders with a low rating will also be unable to pay with cash.
UberX trips from Sydney Airport and Melbourne Airport terminals 1 and 2 are also excluded, although some trips from those airports that do not require a four-digit PIN will still be eligible.
Global
Australia is joining a growing list of markets where Uber accepts cash payments.
The company has already introduced the feature in a number of countries, including the U.S. and parts of the UK.
Uber says the change is designed to give passengers more payment options, particularly those who prefer using cash to manage their spending or who may not have access to digital payment methods while travelling.
Response
NSW Taxi Council CEO Nick Abrahim told TDA the move was another example of Uber becoming “more and more like a taxi,” while not being subject to the same compliance requirements.
Taxis must be licensed, pay higher compulsory third-party insurance than private vehicles used for ride share, and in some cases are required to have security features such as cameras.
Abrahim said they were also concerned about safety, warning some drivers could “overcharge passengers or try to cancel a fare and set their own” outside the Uber app.
