Getting Uber's 'Auto Is Now Cash-Only' Notification? Don't Worry, You Can Still Pay Via UPI
Back in 2024, Ola, Uber, and Rapido removed the in-app wallet payment option for auto-rickshaw rides. The primary reason was to save money.
If you're booking an Uber auto ride today, and suddenly see a pop-up that claims "Auto Is Now Cash-Only" before your booking is confirmed, don't panic. Chances are, your auto driver will still accept payment via UPI, directly to his personal account. Back in April 2024, leading ride aggregators such as Uber, Ola, and Rapido announced that they were cutting off in-app payments for auto-rickshaw bookings. It appears that Uber has finally started rolling out an announcement for users, via its pop-up.
Personally, no matter what app I have been using so far to book my autos — be it Uber, Rapido, or Ola — the only option I would get for payments is the 'Cash Only' one. Once the ride was over, I asked the driver to show the QR code to his personal digital wallet and would pay him whatever was due online, without a hassle. Of course, you can always choose to pay in cash — if you're still one of the blokes carrying cash in this day and age, that is.
Why Did Uber, Ola, Rapido Stop In-App Payments?
As mentioned earlier, back in 2024, Ola, Uber, and Rapido removed the in-app wallet payment option for auto-rickshaw rides, requiring passengers to pay drivers directly via cash or UPI. This move came as companies navigate rising competition from emerging platforms like Namma Yatri and aim to mitigate Goods and Services Tax (GST) liabilities.
Previously, riders could pay for auto-rickshaw trips using digital wallets like Ola Money, Uber Cash, or Rapido Wallet. However, the companies now only support direct transactions between passengers and drivers. According to industry sources, the decision was driven by two key factors: reducing costs related to GST and retaining drivers who were increasingly migrating to commission-free platforms.
Under the Central GST Act, ride-hailing companies are subject to a 5 per cent tax on transactions. Since Ola, Uber, and Rapido act as intermediaries connecting drivers with passengers while also processing payments, they are responsible for collecting and remitting this tax. Removing the digital wallet payment system allows them to shift this tax burden away from their platforms.
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