Uber is launching its Uber Cash digital wallet feature in Sub-Saharan Africa through a partnership with Nigerian founded fintech Flutterwave.
The arrangement will allow riders to top up Uber wallets using the dozens of remittance partners active on Flutterwave’s Pan-African network. Flutterwave operates as a business-to-business payments gateway network that allows clients to tap its APIs and customize payments applications.
According to TechCrunch, Uber Cash will go live in the next two weeks for Uber’s ride-hailing operations in South Africa, Kenya, Nigeria, Uganda, Ghana, Ivory Coast and Tanzania according to Alon Lits, GM of Uber for Sub-Saharan Africa.
“Depending on the country, you’ve got different top-up methods available. For example, in Nigeria, you can use your Verve Card or mobile money. In Kenya, you can use M-Pesa and EFT and in South Africa, you can top up with EFT,” says Lits.
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In Africa, Uber Cash will also accept transfers from Flutterwave’s Barter payment app, launched with Visa in 2019.
It is believed that this move could increase Uber’s traffic on the continent by boosting the volume of funds sent to digital wallets and reducing friction the payments process. Uber still accepts cash in Africa — which has one of the world’s largest unbanked populations — but has made strides on financial inclusion through mobile money.
Uber Africa weathering the COVID-19 pandemic
Uber has been on the continent since 2015 and has continued to operate through the pandemic, with a couple of exceptions. “The only places we ceased operations was where there were government directives,” Lits says. That includes Uganda and Lagos, Nigeria.
Lits acknowledges there had been a significant reduction in Uber’s Africa business through the pandemic, in line with the 70% drop in global ride volume Uber CEO Dara Khosrowshahi disclosed in March. “You can imagine in markets where we were not allowed to operate revenues obviously go to zero,” Lits says.
Uber has adapted its business to the outbreak of COVID-19 in Africa, which hit hardest in March and April and led to lockdowns in key economies, such as Nigeria, Kenya and South Africa.
In line with Uber’s global policy, it’s mandatory in Africa for riders and drivers to wear masks.
“We’re actually leveraging facial recognition technology to check that drivers are wearing masks before they go,” comments Lits. Uber Africa is also experimenting with impact safe, plastic dividers for its cars in Kenya and Nigeria, in a similar feature to Bolt’s “isolated rides.”
Edited by Luis Monzon
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