Online cab aggregator Uber has introduced cash on delivery payment option for its food delivery service UberEATS in Mumbai. The cash payments will be rolled out starting over the next few weeks in the city. The company also announced that it is adding Unified Payment Interface (UPI) as the collection method for delivery partners to deposit the cash they collect.

Note that UberEats is a separate app available on iOS and Play Store. However, Uber riders or UberEATS users can use the same account for the two apps.

 

The company started the service in India with Mumbai in June 2017, followed by Gurgaon, Bangalore, and Delhi. Uber India claims to have 950 restaurant partners in Mumbai as of now.

Cash is a popular option

The cab aggregator said that it has built this feature for India, and will eventually expand the option to some of the other 29 countries where UberEATS is available currently. Cash is a popular choice in India. Logistics company Gati Ltd said in its earnings call for FY17 that the Cash-on-delivery business accounts for 50% of e-commerce orders. Uber introduced cash payments in Hyderabad in 2014. Globally, the company mostly accepts payments via credit card.

The development comes at a time when the government is looking to curb the usage of cash in the country. The ministry of finance has advised banks to re-examine the cash handling charges, withdrawals and deposits so as to promote digital transactions. However, following demonetization, after a brief spike in the number of digital transactions, the usage of cash has re-entered.

Competition

Zomato, which is getting high on food delivery service off lately jolting other food delivery companies, already offers CoD option. Less than two weeks after Zomato acquired last mile logistics startup Runnr, the restaurant listing and food delivery company has most recently now invested an undisclosed amount in Hyderabad-based home-cooked meals startup Tinmen. Another prominent competitor Swiggy too offers cash on delivery option already.

Also Read: Cash vs Digital Money: why going cashless is going to be tough in India