In stating this, Shah Alam Taxi Drivers and Car Rentals President Yazid Mohamad Yusof said this option would allow Uber to reach a wider clientele.

“Previously, only those with credit cards could hire Uber. A cash payment option will allow Uber to attract even more customers,” he told FMT.

Yazid said taxi drivers had seen their income drop by 50% following the emergence of ride-share services like Uber and GrabCar.

Regardless of the payment method, Uber and Grab, he stressed, were operating illegally.

“This has to be stopped.”

Premium Big Blue Taxi founder Shamsubaharin Ismail said the cash method of payment would openly expose the “illegal activities” of Uber drivers.

Uber and Grab are currently considered illegal although Putrajaya is considering legalising the services. However, the transport ministry said it could not take action as their operations were based on a virtual service.

“In court, Uber will say that it only provided the application and doesn’t encourage anyone to sign up. So it is the drivers now who are being made fools of,” Shamsubaharin said.

Uber conducted a test run with a cash payment option in Kuala Lumpur yesterday. It had previously conducted similar experiments in Johor Baru, Penang and Ipoh.

Uber’s decision to allow cash payments will further fuel the anti-Uber and anti-GrabCar sentiment among taxi drivers who have been campaigning and holding protests to get these ride-share services banned.

Apart from affecting their livelihood, taxi drivers are unhappy that Uber or GrabCar drivers are not bound by stringent requirements imposed on them by the law, such as obtaining permits and undergoing periodic vehicle inspections.