Dive Brief:

• Uber Technologies has expanded a test program for drivers to accept cash that began in March, from two cities to five, as the company says it’s exploring ways to reach customers without a credit card or bank account.
• The rideshare and delivery company added Dallas, Orlando and Fort Myers, Florida on April 23 to the two cities in which it began taking cash payments last month: Cincinnati and San Antonio.
• Only riders who have been “verified” by Uber – meaning their account information has been referenced against third-party databases and they’ve offered a “selfie” photo – can pay with cash. Drivers will not make change and cannot accept cash for payment between 11 pm and 6 am, Uber said.

Dive Insight:

San Francisco-based Uber says only “experienced, highly rated drivers” can accept cash trips, for which a verified customer offers a cash notification when booking a trip through Uber’s app. 

About 14% of U.S. households, or 19 million, were considered underbanked in 2023 and may rely on cash to pay for services, the Federal Deposit Insurance Corporation said in a November report on the state of unbanked and underbanked Americans.

“We believe transportation should create opportunities for everyone,” an Uber spokesperson said Friday in an email. “But we understand that not everyone has a bank account or a credit card—some people still prefer to use cash. That’s why we’re testing a new cash payment option to help make transportation more accessible, while also giving drivers more ways to earn.”

Uber will credit any overpaid amount to the rider’s account for future use. Riders that don’t have the sufficient cash payment will be debited in the app and will need to pay the outstanding balance before they’re able to request a new trip.

Uber declined to reveal how many trips have been completed using cash since it began the program on March 11, how many riders are verified, or how long its pilot period would last. The company spokesperson also declined to say whether Uber had made any conclusions about further expanding cash payments options.

The company is “carefully monitoring how it’s going, and gathering feedback from riders and drivers to better understand how the new payment option is being used and received,” Uber said in its statement about the pilot. “As with everything we do, safety is top of mind.”

Uber began offering rides 15 years ago. The company said it accepts cash in several countries, including Brazil.