Why Uber shifted gears when it came to mode of payment?
‘Cash on drop,’ the cash on delivery concept that has worked for Uber. The best companies adapt to change. Change is good. When Uber broke away from its tradition of only accepting payments via card, the world took notice. Uber’s biggest selling point was their convenient payment system. You sit in a cab, you get going and you get dropped off. You get a hassle free ride, as there is no need to enter into a physical transaction with your driver.
However, when you enter different markets, your strategy may need change to penetrate markets with tough competition around. ‘Cash on drop’ has become an important aspect of Uber’s already brilliant service.
How has this change helped Uber tap into new markets?
- Growth Opportunity: In most emerging markets, most people do not own credit cards. Uber wants to serve its customers. Not having a credit card to pay was preventing Uber from making this happen. Thus, Uber addressed this issue and realized the importance of being flexible if they wanted to compete to the fullest.
- Fighting Competition: Competitors in India and Southeast Asia have long been accepting cash payments. Thus, it was important for Uber to introduce cash payment so that it wouldn’t lose out on market share.
- The rebound relationship: Uber’s ultimate goal is to introduce themselves as a smart technology app that helps people move around easily. Once people are familiar with Uber’s excellent service, they will more easily adapt to experiment with other features such as electronic payments.
Uber’s introduction of cash payments has seen a big payout in the Indian market. India has been the land of incubation and this global feature was first incubated in India. India has proved to be a testing point for many of Uber’s new feature, which clearly shows that the Indian audience is a strong testing ground for global companies.
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