Uber has declared its experiment with cash payments in Johor Bahru a success, and is now expanding the payment option to Penang and Ipoh. The ride-sharing service claims that cash payments lead to an influx of new customers in Johor Bahru, with a considerable number opting to pay for their rides using physical money.
Leon Foong, General Manager, Malaysia, Uber said, “Our cash experimentation in Johor Bahru was extremely successful. In its first week of implementation in Johor Bahru, we saw a significant increase in rider sign-ups and one in every four new riders used cash as their method of payment. We also saw an increased demand from areas outside the main city, which helps improve access to transportation in Johor. With the launch of Cash in Penang and Ipoh, we believe we will be able to serve more people in Malaysia using our technology and platform.”
As is the case in Johor, passengers in Penang and Ipoh will be able to opt for cash payments when hailing a ride. The trip then takes place normally, with the only difference being that cash is used at the end of the ride.
Several of our readers had pointed out some potential problems with Uber’s cash payments, although it doesn’t look like there are any legal ramifications for the ride-sharing service dealing in cash. Uber already operates without regulation and that technically makes it illegal. That being said, it is not technically illegal either as there are no laws preventing this sort of service from existing.