Uber is known for practicality to pay the direct running the credit card, without having to even touch the wallet. But in three Brazilian cities, the client can pay with cash as well. Uber drivers in Recife, Fortaleza and Salvador will accept cash payment from next Monday (11) . The reason: many users gave up the register in time to enter a card number.
Fabio Sabba, Uber communications director in Brazil, says the G1 “in the Northeast, more than 60% of users stopped the process of registering the time he needed to apply for a credit card. So we decided to drop a pilot in this region allowing drivers to accept money. ”
The cash payment will not be exclusive to Brazil, on the contrary: the 400 cities in the world where the Uber is present, 86 now accept this modality. The first was Hyderabad, India, in May last year . Then came cities in Kenya, Saudi Arabia, Singapore , Peru, among others.
In countries such as Indonesia and the Philippines – where the Uber also accept cash – only about 10% of the population have credit card. Depend of the means of payment limit the expansion of the company. In addition, competing sites accept cash.
For the user, there is no secret: the value appears on the smartphone screen, and only pay; Sabba ensures that the change will not be a problem. ? But what for the driver, who must pay a fee of 20% to 25% per race, as is TechCrunch explained in February how this works:
Normally, drivers are paid in digital form, that is, payment for completed races … and other additional incentives are sent to a bank account. This allows the Uber easily deduce its rate, but the mixture with money is a challenge, because a part of every race is money Uber.
To handle this, the Uber distributes cash payments slowly in new cities, so not all passengers have immediate access to it. This serves to dilute the number of trips paid in cash with which drivers need to deal with. Thus, according to Uber, the company can deduct your race fee paid in cash the amount paid digitally. While drivers make more trips paid on the card … Uber must never ask them to return money.
In Brazil, one Uber competitor called Televo accepts payment by cash or credit card ; it acts in the Federal District, Rio de Janeiro, Minas Gerais and São Paulo. The driver pays a fixed rate of 15% if the race is paid on the card; if paid in cash, all money goes to the driver.
Uber does not forecast to expand cash payments to Brazil.