Uber launches experiment to pay by cash in India

Showing some flexibility in its payment model, Uber announced today that it would let customers in Hyderabad, India, pay by cash.

“This is an experiment and a global first for Uber across our 300+ cities,” the company wrote in a blog post. “We have worked hard to create a cash payment option that is seamless and truly Uber. Hyderabad was the only city specifically selected for this experiment because it provides us with the right environment to test a new payment option amongst a sizeable and sophisticated rider and driver community.”

In general, part of the appeal of the Uber experience has been the ease of payments that happen automatically via the app after a ride is complete.

Uber has faced some tangled legal problems in India, and the company faces tough competition from Ola, a cab-hailing service that operates in 110 cities in India. Currently, Uber has only launched in 11 cities in India, but a cash option could help it expand to other, smaller cities in a country where use of credit cards remains relatively low.