Uber drivers who ask for cash usually want money in hand right away, and some want to avoid a record of the payment. The first reason is understandable. The second is tax evasion. As a rider, you can say no: the app handles payment, and you are not required to pay cash.
Why some drivers want cash in hand
Cash gives immediate access to earnings. Drivers do not wait for bank processing or digital transfers, which can take several hours or even a day. That matters during busy periods such as rush hour and special events in Vancouver, when drivers want cash for fuel, vehicle maintenance and daily expenses.
Some drivers also value privacy and control. Digital transfers involve banking details, and a few drivers worry about fraud or hacking. Cash avoids electronic processing fees and the time spent sorting out payment problems. In parts of Canada where internet or banking access is inconsistent, cash is a dependable fallback.
The tax side of cash trips
Cash leaves no electronic record that tax agencies can match against bank statements. Some drivers in Vancouver use that to keep earnings off the books and lower their declared income, which can reduce their taxes on paper and make audits less likely.
It is also illegal. Underreporting income carries penalties for tax evasion in Canada. Drivers who want to stay compliant should read the local tax rules and reporting obligations and keep clear records of what they earn.
What to do when the driver asks you
A polite refusal is enough. Say you booked through the app and will pay there. If the driver keeps pushing, you can end the ride in a safe spot and report it through the app afterwards.
Paying through the app also protects you. You get a receipt, the fare matches the quote, and there is a record if something goes wrong with the trip. Cash payments off the app lose all of that.
If you prefer to pay in cash on purpose, a licensed taxi is the normal way to do it, and the fare is set by the meter. The taxi fare estimator gives a rough figure, and the Vancouver taxi page covers local options. For comparison with a rideshare quote, try the Uber estimate calculator.