Thirteen percent of the money paid for rides and deliveries came as cash in 2018, which Uber admits can be a risky business
Uber Technologies Inc. likes to say its “leading technology” “sets the world in motion,” but in some areas of the world, hailing rides and ordering food requires an old-fashioned — and potentially problematic — payment approach: cash.
Operating a business that accepts cash also raises additional legal and regulatory compliance risks, such as concerns about potential money laundering. And in locations where violent crime and tax avoidance is rampant, Uber may never see the cash at all. Brazilian daily newspaper Folha de São Paulo reported in June that police in Rio de Janeiro were investigating the relationship between militias in a favela called Rio das Pedras and a transportation app created for exclusive use in favelas. The police are investigating if those responsible for the app have links with the gang that controls the neighborhood. When a potential passenger asks for Uber in the neighborhood, they get a message that the service is not available.
Collecting fees as an offset to driver earnings is even more challenging when the driver is owed more than what has been charged to consumers. In certain markets, Uber says it “decouples” pricing to customers and drivers.
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