Uber goes back to the future with plans to start accepting cash in Australia

Uber is preparing to reintroduce cash payments into its operations in Australia, marking a significant shift in its approach to digital-only transaction systems. The change, set to roll out nationwide starting July 16, 2026, allows passengers to pay in cash if their driver chooses to enable the feature during a trip. This move aims to address the growing number of Australians who prefer or require cash for transactions, particularly among older demographics, lower-income individuals, and tourists. By doing so, Uber seeks to eliminate one of the last competitive edges held by traditional taxi services, which have historically relied on cash-based transactions.

Under the new policy, Uber drivers will have the option to accept cash payments, though they must opt in for each trip. If a driver does not have sufficient change, customers can receive app credits for future use. Similarly, if a passenger lacks enough cash, they can complete the payment through the app, switching between payment methods mid-trip if needed. However, cash payments will not be available for rides originating from Australian airports, nor for users with low ratings or those under the age of 18. Additionally, drivers will be able to view whether a fare is intended to be paid in cash before agreeing to the trip. These measures aim to mitigate potential risks such as disputes or safety concerns associated with handling physical currency.

According to the Reserve Bank of Australia, approximately half of the population uses cash regularly, with around 15 percent of all transactions being conducted in cash. This usage is more prevalent among older and lower-income groups, although cash remains a common form of payment across various segments of society. Research firm Roy Morgan reported that in the March quarter of 2025, 7.4 million Australians used Uber, significantly outnumbering the 4.2 million who opted for traditional taxis. Notably, Baby Boomers and those over 80 years old were more inclined to use taxis compared to younger generations, suggesting that Uber's expansion into cash payments might attract these demographics.

Emma Foley, Uber’s managing director for Australia and New Zealand, emphasized the importance of offering diverse payment options to accommodate different lifestyles and financial situations. She stated that the introduction of cash payments aligns with the broader trend of services moving towards digital-first solutions while ensuring accessibility for those who rely on cash. "We want to ensure people have options that reflect how they live and pay day-to-day," she explained, highlighting the company's commitment to inclusivity.

However, the decision to introduce cash payments has sparked debate within the labor rights community. The Fair Work Commission, responsible for overseeing workplace conditions in Australia, is currently evaluating proposals that could establish minimum pay and working conditions for ride-share drivers. These regulations might require companies like Uber to engage in consultations with employees prior to implementing contract changes that could affect their livelihoods. Transport Workers Union national secretary Michael Kaine expressed concerns that allowing cash payments could expose gig workers to heightened risks, potentially positioning them as targets for criminal activity. He criticized the lack of accountability from gig economy companies, arguing that they often prioritize profit over worker safety and well-being.

Uber has already implemented cash payment options in over 70 countries, including the United Kingdom and Japan. In Australia, the company has generally avoided controversies linked to traditional taxi services, partly due to its reliance on an app-based pricing system that reduces opportunities for manipulation. Acting NSW point-to-point transport commissioner Kate Timbs noted that her office is actively monitoring all ride-sharing platforms to ensure compliance with regulatory standards and to safeguard consumer interests. As Uber transitions into this new phase of operation, the implications for both consumers and drivers remain under close scrutiny, with ongoing discussions about balancing convenience, security, and fair treatment of workers.