Uber launches cash payments in Singapore

Uber is bringing its cash payments system to Singapore, the transportation company announced today, making it the first “developed” city to test this method, according to newly-appointed Singapore general manager, Warren Tseng.

Singapore’s credit card penetration is significant – 69 percent of consumer spending is done through credit cards in the country, according to a MasterCard global report. But it’s the rest of that percentage that Uber is looking at, Warren says.

The test will show if Uber can get into more people’s phones this way.

Uber figures that, by eschewing the credit card requirement, it can get more first-time riders on the app, who might have held back before. It can also entice seniors or students who don’t necessarily have credit cards. Finally, Warren says cash payment tests in other markets have shown that more people use the app in areas outside the traditional central, urban locations that Uber mostly serves. Adoption rate can increase by an average 45 percent, he explains.

Essentially, the test will show if Uber can get into more people’s phones this way, even in markets where cash payments aren’t in huge demand. At the same time, Warren says, the company wants to maintain the same quality of service whether in the central business district or way out in the suburbs.

The cash payments update should be rolling out gradually to users’ phones from today, and will be available for the UberX and Uber Black options.

The company has introduced cash payments in various markets around the world, including several cities in India, in Manila, and in Malaysia and Indonesia.

Uber recently underwent a significant restructuring worldwide, with several employees laid off and replaced by new ones from key Silicon Valley companies. Warren did not comment on whether the restructuring had any effect on its strategy going forward. He says, instead, that Uber will continue trying out new products and adapting them to each territory, and that Singapore remains a priority market for the company.