Uber drivers to accept cash outside London

Ride-hailing app Uber has confirmed it will begin accepting cash payments from UK passengers in a major shake-up for its army of Uber drivers.

Despite previously only accepting card payments in-app, Uber will now allow cash payments to be made across all of its UK locations in a bid to ensure those who don’t carry cash can use its service. All locations, that is, except London, where the feature is still under review.

Uber has also said that drivers can opt out of accepting cash. But the announcement is a sign that the cashless debate is revving up among consumers. 

Last week, a report advised the government to protect the use of cash payments in shops and services to ensure that those who rely on it are not left behind.

What has Uber announced?

With its smart ride-hailing app, Uber has made its name for its modern technology that made it possible to order a taxi cab without having to flag one down in the rain. 

However, its latest move to accept cash payments is a step back in time to allow passengers to pay for their ride with coins and notes if they wish, instead of just paying by card. 

From today, the platform has said that customers outside London will be able to select cash as their preferred payment method in their virtual wallet. 

Once paid, they will then be emailed a copy of the receipt for the fare. If the driver does not have enough money for change, the customer will be credited with Uber Cash, a type of in-app credit that can be put towards their next Uber ride.

As reported by the BBC, the move comes after Uber trialled successful, cash-friendly pilots in Birmingham, Stoke, Nottingham and Leicester.

“We believe that movement should be accessible to everyone, so following successful pilots in some UK cities over the last 18 months, we have decided to give passengers outside of London the option to pay for trips with cash,” a spokesman said.

Cash campaigners hail Uber

Campaigners including Ron Delnevo, a spokesperson for the Payment Choice Alliance, have praised the decision to welcome cash payments by Uber. 

Cash access is currently a hot topic, with widespread bank closures and new payment technologies having forced many consumers towards online banking. But whether in protest, or as a result of the ongoing cost-of-living crisis, cash payments now seem to be rising.

Last year, banking body UK Finance recorded a 66% increase in the number of people who prefer to use cash for their everyday spending.

Currently, it is not illegal for shops to refuse cash. But a recent Treasury report predicted there may come a time when the government has to “mandate cash acceptance” to ensure cash users can still access their beloved paper notes.

Firms other than Uber are also responding to the pressure to keep cash access alive. Last week, the Post Office announced it had signed a new deal with major banks to ensure SMEs can deposit and take out cash, amid fears that coins and notes could become endangered.

What does it mean for drivers?

Uber is one of the most popular side hustles in the UK. Brits across the country have turned to it as a way to make a bit of extra cash on the side, given the app’s low-cost and low-barrier to entry (all you need is a drivers license to get started).

With more Brits choosing to pay by cash, Uber drivers may find that they can take on more bookings and increase their take-home pay by accepting coins and notes. 

Nonetheless, there are downsides to accepting cash fares. With loose change, profits might be harder to record. There may also be concerns about security. 

Cash fares could also lead to a slight delay in your take-home payments, which may confuse your cash flow. For example, say a rider has a promotion or discount on a trip. Their fee will reflect this discount, and you’ll only receive the full fare with your next payment.

Similarly, if a rider didn’t have enough cash to settle a previous fare, they will be charged extra on their next trip, which could give you a temporary bonus that you then quickly lose.

As a result, Uber has said it will allow drivers to opt out of accepting cash payments in their own app settings. Those who drive for Uber as a side hustle will now need to choose which side of the road they drive on in the global cashless debate.

Drive for a living? It might be time to look at how you take card payments from passengers. Check out our guide to the best card readers for taxi drivers.