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Uber Tests Cash Payments For Cabs In India

Uber Tests Cash Payments For Cabs In India
In this Tuesday, March 25, 2014 photo, traditional black-and-yellow licensed cabs and private cabs stand at a parking lot at the airport in Mumbai, India. Taxi-hailing smartphone app Uber is making a big push into Asia with the company starting operations in 18 cities in Asia and the South Pacific including Seoul, Shanghai, Bangkok, Hong Kong and five Indian cities in the last year. (AP Photo/Rajanish Kakade)
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In this Tuesday, March 25, 2014 photo, traditional black-and-yellow licensed cabs and private cabs stand at a parking lot at the airport in Mumbai, India. Taxi-hailing smartphone app Uber is making a big push into Asia with the company starting operations in 18 cities in Asia and the South Pacific including Seoul, Shanghai, Bangkok, Hong Kong and five Indian cities in the last year. (AP Photo/Rajanish Kakade)

MUMBAI -- Uber is testing cash payments in India as the online taxi-hailing company seeks a stronger foothold in a country where many fewer people have credit cards than internet connections.

San Francisco-based Uber has grown rapidly in value to be worth around $40 billion. But in India it has lagged local rival Ola, which has about 80 percent of the organised cab market.

Many analysts say that is because Uber has not adapted its business model enough to suit India's needs.

Uber said on Tuesday it was piloting cash payments for cabs in the southern Indian city of Hyderabad, in a first for the company globally. Until now, Uber's mobile application around the world has charged customers through credit cards or other electronic payment methods.

India has about 20 million credit cards for a population of 1.3 billion. Though the government is trying to change this, most purchases are done with cash.

Ola and other Indian cab services accept cash for rides, while e-commerce giant Amazon introduced a cash on delivery option when it launched in India.

"Tradition dictates that cash plays a big role for Indian consumers," said Siddharth Shanker, Uber's general manager in Hyderabad.

In April, Uber followed Ola by tying up with autorickshaws -- affordable three wheeled taxis that ply Indian roads -- in some cities as it tries to reach more customers.

Uber was banned in New Delhi following allegations of rape against one of its drivers in December, but has found support from India's transport ministry.

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This article exists as part of the online archive for HuffPost India, which closed in 2020. Some features are no longer enabled. If you have questions or concerns about this article, please contact indiasupport@huffpost.com.