Popular transportation service Uber has introduced a new way to pay.
Uber is bringing its cash payments system to Singapore, with the company announcing that the introduction would mark the first ‘developed’ city to test the method.
The company is confident that by eschewing the card requirements, it will get more first-time riders and also entice seniors or students who may not have credit cards.
General manager Warren Tseng said cash payment in other markets has made Uber more accessible and encourages users to utilise this latest option.
“Cash transactions make up over 30 per cent of all transactions in the island-state, so introducing cash payments as an alternative option for Singaporeans makes sense,” he said.
Uber figures show that customers using credit cards predominantly come from urban city regions, meaning cash payments are expected to assist the company in attracting new customers further from city centres.
According to Tseng, adoption rate could get a boost of 45 per cent by including cash as an accepted payment method.
Uber data also reveals cash-paying customers also tend to take longer trips – their cash payments enabling drivers to easily deal with day-to-day expenses, including petrol. Availability of the cash payment option will also allow Uber to compete with its top competitor, rival transportation network company Grab.
The changes in Uber’s policies come after major internal restructuring. The company will continue to adapt services to individual markets, with Singapore remaining the core area that the enterprise operates in.
Of the 400 cities where Uber is in operation, only 40 currently accept cash payments.