The City of Cape Town has recommended that e-hailing service provider Uber cancel the option given to customers to pay for rides using cash in order to avert further protests. This after a violent clashes between an Uber driver and metered taxi drivers in the Cape Town CBD yesterday.

Councillor Brett Herron, Mayoral Committee Member for Transport in Cape Town, says the introduction of cash as a payment method nearly two months ago is largely to blame for the return of protests by metered taxi drivers.

"We have indicated that we welcome the addition of Uber and that it needs to be licensed like any other operator. In our engagement with Uber and other e-hailing operators we have indicated that we would support a certain number of licences specifically for e-hailing services including Uber. Part of the condition is that the e-hailing operators need to have a cashless system and so I have some concerns around Uber's decision to now accept cash because that changed the game and the arrangement that we had in discussions with them. I met with Uber earlier this week and I told them that I was not happy that they are changing the game and I reminded them that when we first met two years ago part of the discussion was that it would be a cashless system and that would set them apart from any other operator."

Herron adds that while licensing of e-hailing services is primarily a provincial competency, the provincial government relies on the City's planning for transport services.

He says the City has indicated to the provincial government and e-hailing companies, including Uber, that they are willing to issue only one thousand licenses for relevant services in Cape Town, and says Uber does not have very long to revoke the decision to introduce cash payments for rides.

"They have my views and they are busy working on a new business plan that they will present to us. They said they would have a new business plan and model to present to us next week, but we are getting very close to the 3rd of August elections and I don't know if I am going to be the mayoral committee member for transport after the election, so it is a very odd time but that is the undertaking."

Uber would not elaborate on a possible review of the introduction of cash payments option for riders, but said "Some people do not want to use credit cards. Again, this is to help driver-partners get more trips. There has been no increase in crime so far. Paying in cash was the norm before Uber so it's not so unusual. We've got an agreement with FNB so driver-partners can deposit cash whenever they like so they need not carry much around with them anyway. They can even see who wants to pay with cash before picking up the passenger, thanks to the app. And if something goes wrong, we have a 24/7 security team they can call any time they feel unsafe."

The transport company disputes allegations that the torching of an Uber driver partner's car last week Saturday was due to the retaliation of metered taxi drivers due to the introduction of cash payments.

"There is a small group of ten or so driver-partners in Cape Town who claim they know metered taxi are to blame, particularly with us accepting cash. They are speaking to many of you and saying this. They have nothing to substantiate these claims. It is unhelpful, inflammatory and they continue to spread these rumours rather than wait for the police to conduct their investigations."

Uber has confirmed the driver attacked remains in hospital, but is stable and responding well to the doctors.

Lennit Max, Western Cape Province's spokesperson for Transport and Public Works has since issued a statement condemning the violence, calling for calm and stating the government's view on the tension between Uber and the Western Cape Metered Taxi Council, which is alleged to be behind the recent violent confrontations.

"Metered taxi drivers are facing tough competition, but they must meet this competition with innovation not violence. We are also very supportive of the Uber innovation, they must however work within legislation and regulations and we must apply the law equally to all operators."