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Uber Kicks Off Cash Payment In Indonesia To Meet Market Challenges

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To continue its expansion spree  in the South East Asian market, Uber has been making cash payments a norm in the region given the remoteness of credit card payments in the market. Uber has announced that it is following up this strategy even for the Indonesian market.

Bandung, Indonesia will be the new addition to Uber’s list of cities offering payment through cash. As of now Uber offers this service in six countries, half of which happen to be the South East Asian region.

Uber also revealed that the process will be steady one and for now only a select few riders will be receiving cash as a payment. The taxi aggregator has over 10,000 drivers under its belt in Jakarta, Bandung and Bali; a massive growth considering its launch a year earlier.

The mode of payment will be first introduced as a trial run to understand the market better.

Karun Arya, speaking on behalf of Uber, said –


Uber is yet to obtain a business licence from the Indonesia’s Investment Coordinating Agency (BKPM), which the company is keeping as priority task according to Arya.

Uber continues to face opposition around the world, including Indonesia, where the Government and local cab drivers are putting a wall against its smooth operation. The opposition has forced the Jakarta Police to keep a check on the cab drivers using Uber in the city. Previously, it also received a clear warning from the Governor of Jakarta that it is liable to register as a local operator to pay tax.

Even amidst the opposition Uber continues to operate in the country and regards the Indonesia as a prospective market.

Karun Arya added –

We haven’t even scratched the surface in Indonesia. There are cities like Makassar, Medan and Surabaya, which are the types of cities where we would like to expand someday.

Uber first introduced the cash payment option under its service in the city of Hyderabad, this May. As of now Uber has taken the payment option to Saudi Arabia, Kenya, Vietnam and the Philippines.

Commuters in all the 22 cities of India where Uber operates are offered the cash payment option. India happens to be the second largest market for Uber with regard to the number of cities operated after the U.S.

Uber’s next stop is India’s next door neighbour Pakistan where it is expected to launch its services before 2015 draws to a close.


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