TechCabal is reliably informed that testing for cash payments for Uber users in Lagos will commence soon. Currently, it is only possible to make payment for Uber trips via debit card. However, a small group of riders in Lagos will be be shown the option, in-app, to pay in cash. If they select it, the driver will be notified once the trip commences, and reminded as soon as it ends, to collect the payment from the rider.

Uber, since its inception, has been traditionally cashless, which makes the transaction frictionless for all the parties concerned. One commonly touted value proposition of the service is that you can use it even if you leave your wallet at home. But not all the countries where Uber operates from are developed to the point that cash can be ignored. As of today, Uber has enabled cash payments in six countries.

In May 2015, Hyderabad in India, was the first test bed for Uber cash payments. Today, all 22 Indian cities in which Uber operates have the cash payment enabled. In July 2015, Uber Nairobi turned on cash payments, leading to a 3x increase in growth for that city.

The Lagos cash payment test will likely make Nigeria the seventh country that supports Uber cash payments. Whether it will be received as enthusiastically as it has been in previous test zones remains to be seen. But it certainly certainly open the Uber Lagos operation up to users who aren’t comfortable with card transactions, or have issues making payments with their debit cards.

In fact, this development couldn’t have come at a better time, when Lagos riders are furious with the service for apparent discrepancies between Uber receipts and the actual amounts debited from their bank accounts. Nigeria’s current foreign exchange morass, and questionable bank behaviour might be to blame, but users are laying it all at Uber’s doorstep. Letting users pay for their rides in cash instead of with their debit cards, completely circumvents the foreign exchange problem, while providing additional value to the end user. Great save?

TechCabal has reached out to Uber for comment on this developing story.

Read this next
More From TC

A year after it raised a seed round of $3.1m, Nigerian Edtech platform uLesson founded by former Konga’s CEO Sim Shagaya, announced today that it has closed a $7.5m Series A round. uLesson, which was founded in 2019, is working on bridging the educational gaps for K-7 to K-12 students across Africa by delivering affordable, […]

In 2020, Tech Cabal ran a survey to find out which period apps were common in Africa; the focus was on Nigeria.  The survey reached women at the peak of their reproductive life (between 18 and 35). It asked what they tracked with these apps and how much they cared about the privacy of the […]

What do you do when a company asks for your consent on its privacy policy? If you’re like most people, you click on agree and move on. After all, who has time to read long and confusing legalese. The other option is to ignore or not accept (this option is rarely available) at the detriment […]

TechCabal is a Big Cabal Media brand

Copyright © 2013 - 2021
All rights reserved

Privacy & Terms