Customers for ride hailing platform inDrive will now be able to pay for ride and other services using bank transfers and EFTs, a departure from how the industry has operated for years.
Payment methods have, for years, been a bone of contention for e-hailing drivers. Typically, customers register a bank card with a platform on registration, with an amount deducted electronically each time a person uses the service. With this arrangement, drivers get their earnings as a lump sum periodically, say monthly.
While this is standard practice, many drivers prefer getting cash payments for their services as it means immediate access to their earnings.
For cash-strapped operators, cash payments provide liquidity which can be used for personal and operating expenses such as fuel. For consumers, cash can be cheaper as it forgoes processing and charges associated with card payments.
These are the main modes of payment that inDrive and its rivals, Uber and Bolt, have used in the country.
However, in SA where crime such as theft and pickpocketing is widespread, cash carries a risk to both drivers and consumers.
Against this backdrop, inDrive has created a hybrid third option for its business.
On Monday, the company introduced what it calls “Light Cashless,” a bank transfer payment feature “tailored for the SA market”.
inDrive is a US-based service with more than 150-million downloads operating in 47 countries. The company operates in nine SA cities — Cape Town, Johannesburg, Pretoria, Durban, Gqeberha, East London, Pietermaritzburg, Rustenburg and Polokwane.
According to the company, the new options allows drivers to display their preferred bank details in the inDrive app, enabling passengers to copy and paste the information for direct bank transfers.
“Unlike traditional payment gateway integrations, this model ensures swift and transparent transactions without additional processing fees, giving drivers immediate access to their earnings while enhancing payment flexibility for passengers,” the company said.
This is one of the initiatives made by smaller players in the sector to compete with SA’s two largest operators.
US-based Uber and Estonia’s Bolt both have deep pockets. Bolt is trying to raise $450m, at a valuation of $14bn, while publicly traded Uber is worth $167bn.
inDrive is estimated to be valued at $1.23bn based on its latest funding rounds.
“Light Cashless” appears to be a feature that has worked for inDrive in other markets. “With positive feedback highlighting its ease of use and reliability, inDrive aims to replicate this success in SA by working closely with local stakeholders to ensure seamless implementation,” said the company.
“Our goal is to provide solutions that prioritise user needs while fostering a safer and more convenient ride-hailing environment,” said Ashif Black, inDrive country representative for SA.
“By introducing ‘Light Cashless’ in SA we are not only aligning with the growing adoption of cashless payments but also reinforcing our commitment to innovation that directly benefits drivers and passengers.”
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