A few days after increasing rates on its platform, leading ride-hailing app company, Uber appears to be moving to combat off-app negotiations by drivers with a new policy. According to a new policy document seen by Technext, riders can now switch from cash to in-app card payment before the end of their trip.
The company said the purpose of the new policy is to avoid troubles in the case where the rider does not have enough cash, or where the driver does not have enough change to return to the rider.
“Riders now have the option to switch from cash to card or any other payment before their trip ends. This is useful when riders don’t have enough cash or the drivers do not have enough change. There is nothing you need to do if a rider switches payment methods. We will notify you if they switch and you will also see an update on your final payment screen. You will then be paid through the Uber driver app for these trips. No action is required from you to receive digital payments through the Uber driver app,” Uber said.
Drivers react to Uber’s new sudden-switch policy
While this seems like an important update, many drivers believe the challenges the new feature claims to address have hardly ever been a problem since many riders transfer payment directly to drivers’ bank accounts.
The ones who pay in cash usually have their full cash ready before embarking on the trip and even when they do not, usually transfer the balance, or quickly withdraw from a PoS vendor.
Indeed, the Lagos state public relations officer of the Amalgamated Union of App-based Transporters of Nigeria (AUATON), Steven Iwindoye pointed out that the policy will not work. He said such a feature is not needed at this time and it will cause a lot of quarrels between the drivers and riders.
“See, this policy cannot work because when I picked the request, what was showing was cash. So at the end of the trip, I am expecting, either you to transfer to me, or you give me cash at hand. We now get towards the end of the trip you are now telling me you want to switch to digital payment.? Maybe you want to pay via Uber or any other means which I don’t know. Do you know if I have cash at the moment to buy fuel? And it is not as if Uber is going to pay you immediately. It is not going to work. This is a no, no no,” he said.
A driver, Ajibola said the new feature could lead to a riot because drivers generally dislike card trips to begin with.
“This will stir up rioting o,” Ajibola told me. “Drivers already do not like carrying card trips. So with this option, a rider can use it to attract a driver, then switch once the order is consummated thus leaving the driver high and dry,” he said.
Uber’s ploy to curb off-app negotiations
Some drivers also believe this might be the start of a long-term move by Uber to eventually make all payments fully in-app, a ploy to curb the prevailing modus operandi by drivers to negotiate a different and higher fee than is stipulated in the app.
This is because if a rider who has agreed to an off-app fee with a driver switches mid-trip from cash, which is usually the preferred payment method for these trips, to card payment, then the full payment would be made directly to Uber instead.
Uber would then pay the driver the exact amount it stipulated, regardless of whether the rider even paid the full offline fee or not.
The AUATON PRO agreed, insisting it is an attempt by the company to avoid doing the right things like reducing its commission and rolling out incentives for drivers.
“What they are trying to do is to curb the off-app and if they want everything to go the way it is supposed to go they should call for a roundtable negotiation with the union. They should not think they can do whatever they like. They call us partners but they are not treating us like a partner. What they are doing is using divide-and-rule tactics to disrupt us. The best thing they can do now is to cut down their commission and roll out incentives for the driver partners,” he said.
He also pointed out that despite that, the company does not determine how drivers are going to get their money.
“What we work is what we spend. So now if you want them (riders) to do app wallet payments. after they do the digital payment, I don’t know when I am going to get my money. So it is better I have my money with me, then if I owe Uber, they know how to get their money,” he finished.
See also: Abuja e-hailing drivers snub Uber/Bolt, set new N450 per kilometre rate for rides
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