Uber Finally Accepts Cash -- For Autorickshaws In Delhi

An anonymous reader writes Car-hailing giant Uber has launched a new service called UberAUTO in Delhi, which will not only make no charge for hailing an autorickshaw, but will permit customers to pay cash for the first time in the company's history. As there seems to be no specific reason why the three-wheeled carriers should be exempt from Uber's online-only payment policy, the move invites speculation that the $40 billion firm is experimenting with unlocking another revenue stream.

Won't work in the US

[mitcheli]

Cash payments, while really nice for the drivers, would open them up to attack. In markets like DC. Uber drivers have to have clear signage indicating they are driving for Uber (see how many you can spot on the street corner sometime). But if they have this signage, there's nothing saying they can't be carjacked or mugged.

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[davester666]

They would be an improvement on US culture?

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[gl4ss]

autorickshaw/tuktuk drivers work in cash only anyways so not sure how different uber drivers would be from your regulars.

they all work cash only.

all of asia between turkey and korea is cash only for most daily matters.

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[Blaskowicz]

In Soviet Russia, the passenger rapes you!

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[jklovanc]

Most regular taxis take cash.

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[Half-pint HAL]

Cash payments, while really nice for the drivers, would open them up to attack.

Autorickshaws are a type of mini-taxi common in India. They are already cash-based operations.

The summary says:

there seems to be no specific reason why the three-wheeled carriers should be exempt from Uber's online-only payment policy,

...but as they're typically metered anyway rather than fixed price, there's a very good reason -- Uber are moving into an established market sector, not creating a new one. They're effectively trying to be "central dispatch" to a bunch of existing self-employed taxi drivers.

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[Half-pint HAL]

I know... dangerous precedent, isn't it?

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[transporter_ii]

Obviously a large amount of Americans are able to make web-based payments. In India, this is probably the exact opposite situation. The reason they would do this is obvious if you think about it, and the reason why they would not want to do it here is also obvious. It would make it A LOT harder to get their cut if people were paying in cash.

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[angel'o'sphere]

Open to attack, wow.

The world must have really many bad places.

In Germany I doubt you find a cab that accepts a credit card. Processing fees are much to high for that and I certainly never saw a cab with an option to pay with card.

However in common "holiday countries" using credit cards to pay a cab are more common.

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[jratcliffe]

In Germany I doubt you find a cab that accepts a credit card.

Well, unless you consider Munich, Frankfurt, and Berlin to not be part of Germany, your doubt is very misplaced. I've used a credit card in taxis in all three cities. Not every cab takes them (although I can't remember ever having to go past the second taxi in the rank to get one, so I'd say at least 50%), and there's usually a fee (a Euro or two), but it's not at all unusual.

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[angel'o'sphere]

Well, I did not try for years since I had really trouble to pay once when I realized they don't accept them.

Point is: cabs are usually payed in cash ... and the "attack/assault" danger is close to null in civilized countries.

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[jratcliffe]

Cab payment patterns pretty much match overall payment patterns. Americans use credit cards for a much larger portion of transactions than Europeans. I never pay with cash when I can pay with a card, it's simpler, faster, and cheaper to use a card.

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[angel'o'sphere]

How can it be cheaper to pay with a credit card? With the signing etc. I doubt it is faster. It might be fast in countries where you simply enter a PIN code.

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[jratcliffe]

You don't sign or put in a pin code. Just swipe, and you're on your way. As for cheaper, I get at least 2% cash back on all my credit card purchases, 5-7% in some cases.

New revenuestream?

[Anonymous Coward]

...experimentig with unlocking another revenue stream...

Since most of Ubers business model seems to be based on "ignore local law, regulations, ignore having expensive insurance, ..."

Let me guess, this new revenuestream is based on "skip reporting GST or income tax too"

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[Locke2005]

If they accept cash, they're pretty much guaranteed the uber "drivers" are going to lie about the actual distance and short them on their percentage, so it's not much of a revenue stream. I'll bet they are amazed how many of the rides they arrange only travel a single block...

It's a farce

[OverlordQ]

Still trying to say you're not a taxi service at this point is getting pretty ridiculous.

Re:It's a farce

[Locke2005]

Lower prices at what cost? It appears their business model is based on not paying taxes licensing fees and not paying for commercial insurance. Lower cost due to an unfair competitive advantage gained by being scofflaws... is that the kind of business model we want to encourage?

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[jklovanc]

I'd argue Uber (and similar services) is an experiment in whether or not we actually need/want those regulations.

There was a time when there were no requirements. The taxi laws were built over the years to deal with problems. The experiment has been done and the result is the current system.

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[tmosley]

"The taxi laws were built over the years to deal with problems."

Yes, problems like competition from the little guy limiting the cash flow for the big boys.

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[tmosley]

Sorry, but they do, in fact, pay for commercial insurance. The other costs are the fault of government intervention in the marketplace on behalf of the taxi companies. Fuck them both is a broken broomhandle. Medallions are fascism, plain and simple. The merger of government and corporate power to produce income for the government and shield the corporation from competition. Uber is what will make THEM behave, not the other way around.

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[Anonymous Coward]

Are you a taxi driver? If not why do you care? Uber means lower prices.

I care because I want to be able to safely hail a cab at 3:00am and not get gouged, robbed, raped, or abandoned in a ghetto.

The reason why taxi laws exist, in nearly every country on the planet, is always initially due to consumer protection.

The "draconian" and "tyranical" "protectionist" taxi laws help make it safe for the consumer/rider and ensure certain things like:
Accountability.
Driver licensing and insurance.
Vehicle maintenance and safety standards.
Access for people with disabilities.
Round the clock s

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[tmosley]

Funny, since a taxi driver can rape you, murder you, and dump the body without leaving any evidence that you were ever in his cab, as opposed to Uber where the company knows exactly when and where you got in and out, what route you took, etc. An Uber driver raping a passenger is like a guy raping someone in the lobby of a police station. He's going to get caught, and he knows it. So in reality, it just doesn't happen, except maybe when someone just poses as an Uber driver, but fuck, you can pose as a pol

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[tmosley]

No, the laws were enacted to protect corrupt taxi cartels (you know, the ones signing your paychecks) from competition.

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[GuB-42]

Are you a taxi driver? If not why do you care? Uber means lower prices.

Not necessarily : taxi fees are regulated, Uber fees are not.
In Bangkok for instance, official taxis are one of the cheapest mode of transportation, especially if you are a tourist. Because prices are regulated, they can't overcharge you (although some may attempt to scam you by not using the meter).

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[Trailer Trash]

Still trying to say you're not a taxi service at this point is getting pretty ridiculous.

So is claiming that limiting the number of taxis through a medallion system is for the benefit of consumers.

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[tmosley]

Why don't you log in? Afraid you'll be made for the shill you are?

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[tmosley]

"Him"

Whatever you say, same"fag".

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[volmtech]

This is an ongoing subject. According to some other poster it cost x amount of dollars to run a cab. A taxi can't run at a loss so the more taxis there are the less riders per taxi means higher fares to keep all those cabs running. That million dollar medallion might have something to do with cost though.

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[Trailer Trash]

This is an ongoing subject. According to some other poster it cost x amount of dollars to run a cab. A taxi can't run at a loss so the more taxis there are the less riders per taxi means higher fares to keep all those cabs running. That million dollar medallion might have something to do with cost though.

It's so funny to see stuff like this written so seriously by someone who doesn't understand basic economics.

Here's something to chew on: why does this "problem" only apply to taxis? Why don't we have a medallion system for grocery stores?

Be careful, your brain might catch fire thinking this hard....

how DID it work?

[slashmydots]

I've never used Uber. Do they normally do some kind of escrow thing or prepay only or invoice the customer after the fact?

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[amicusNYCL]

You give them your credit card when you sign up, and they charge it once the ride ends and email the receipt.

"... first time in company's history" == 2 yrs???

[DutchUncle]

Overdramatic much?

Autorickshaws market is tough

[140Mandak262Jamuna]

The autorickshaw market is brutal, on the customers. It is ripe for taking. The Indian autorickshaw drivers routinely tamper with the meter, haggle with the customer, demand tips on top of the metered rate, refuse to fares etc etc. Most Indians are fed up with them and those who could afford the wait time and money prefer to use "call taxis". But..

It will be a tough market to break into. Most of these autorickshaws are actually owned by the traffic policemen and lower level politicians with strong criminal nexus. The actual driver is usually a hired hand. Some of them rent the vehicle for a flat per-diem rate. The policemen do not enforce the laws on the book for "their" autorickshaws. If they decide to selectively enforce all the law on the book on uber affiliated drivers, Uber will find it difficult to handle.

Unless Uber gets into cahoots with a local politician with enough clout, this won't work for Uber. Even if it works, it won't work for the ordinary Indians. Corruption in USA is distant, does not affect the daily life directly, it is more abstract. In India, it hits you right between the eyes, in every turn. From getting simple driver license renewal to getting the building permits to getting electricity connection to getting a death certificate to legal heir certificate to... every where there is a someone sheepishly grinning with a hand held out, "Saar, take care of the usual saar"

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[ThatsMyNick]

Uber is using existing autos licensed for public transportation. Autos for private uses are non existent anyways (for it be used like regular Uber)

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[bayankaran]

The situation has changed in most urban centers of India as far as auto-rickshaws are concerned. Most have electronic meters which are resistant to tampering.

About policemen owning auto-rickshaws - you may find some outlier cases in certain areas of India, but the way you generalize a whole country is illogical and untrue.

There are enough problems in India...but there is no need to exaggerate or generalize such a vast country in broad strokes.