Source : THE AGE NEWS
Uber is about to start accepting cash payments, eliminating one of the few remaining advantages enjoyed by local taxi companies over the multinational ride-sharing giant.
The change, which Uber confirmed would be rolled out from July 16, will allow passengers riding with Australia’s dominant transport service to start paying in cash if their driver opts in, rather than electronically via the app.
It could help Uber win the business of older passengers, who are more likely to use cash, but also risks opening the door to payment disputes and driver safety issues that have faced the regular taxi industry.
This week, Uber informed drivers that it was changing its contracts to let them accept cash. “These terms only apply when you choose to accept cash-enabled trips,” it told drivers in a message seen by this masthead.
If an Uber driver doesn’t have change, the customer can be given credits in the app for future use. Likewise, if a customer doesn’t have enough cash, they can pay the balance through the app, and payment methods can be switched mid-trip. Fares will still be set beforehand and disputes can be handled via Uber’s customer service.
Cash payments will be disabled for trips from Australian airports, and won’t be available for Uber teen accounts and riders with a low rating. Drivers will also be able to see if a fare is to be paid in cash before accepting.
In an average week, half the population uses cash, and about 15 per cent of all transactions are settled that way, according to data from the Reserve Bank of Australia. Older and poorer people tend to use cash more than most, but its use is widespread.
Research company Roy Morgan found that 7.4 million Australians used Uber in the March quarter of 2025, compared to 4.2 million who used taxis. Baby Boomers and those aged over 80 were the most likely to use taxis compared with younger people
Uber’s managing director for Australia and New Zealand, Emma Foley, said cash was still widely used, citing tourists, young people and those on a budget as potential beneficiaries of the change.
“At a time where services including transport move toward digital-first payment systems, we want to ensure people have options that reflect how they live and pay day-to-day,” Foley said. “By introducing cash payments on Uber, we’re helping more people get to the places and services that matter most, using the payment method that suits them best.”
The Fair Work Commission, which is the national industrial umpire, is considering making new rules for ride-share drivers that could set minimum pay and conditions, including by requiring companies like Uber to consult with staff before changing their contracts.
Transport Workers Union national secretary Michael Kaine said the industry had been making progress but Uber’s move to unilaterally decide to accept cash could take conditions backward.
“Gig workers fear that they will be seen as a mobile ATM for criminals,” said Kaine. “For too long, gig companies have been able to absolve themselves from any responsibility for workers and make whatever decisions they want to maximise profits.
“We may soon see a decision on minimum standards for food-delivery workers right across the country, which would compel companies like Uber to consult with workers before making unilateral changes that could put their lives in danger.”
Uber already accepts cash in more than 70 countries, including the United Kingdom and Japan.
This masthead has previously reported on rorts involving regular taxis in which drivers have demanded extra cash payments. Uber has largely avoided those scandals, but that is also because its prices are set through an app rather than a metre that can be manipulated.
Acting NSW point-to-point transport commissioner Kate Timbs said her team was monitoring all ride-sharing services to ensure passengers in the state were safe as a top priority.
“Existing obligations of Uber as a booked service provider have not changed,” Timbs said. “All services are required to be booked prior to the journey with a clear quote or estimate. We will continue to monitor that Uber is meeting its safety requirements.”
Safe Transport Victoria declined to comment by deadline.
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Nick Bonyhady is the business editor of The Sydney Morning Herald and The Age. He is a former deputy federal editor, technology editor and industrial relations reporter.Connect via X or email.
