Ride-share service company Uber will accept cryptocurrencies at some point in time as its becoming extremely valuable. Dara Khosrowshahi, CEO of Uber, in an interview, acknowledged that bitcoin and some other cryptocurrencies are quite valuable as a store of value.
However, he also noted that the cost to exchange can be expensive, and its not great for the environment either. Khosrowshahi said that when the exchange mechanism becomes less expensive and becomes more environmentally friendly, Uber will take up crypto. But it doesn’t look like anytime soon.
Oscar Salazar, the co-founder of Uber, had set up Voyager – a crypto exchange platform, in July 2018. And in mid-December 2018, Fold made it possible to use BTC with Uber via the Fold application. Analysts highlight Khosrowshahi, who became Uber’s new CEO, as an early bitcoin advocate, as he had led Expedia, a travel booking platform, to become one of the first merchants to accept bitcoin as a form of payment in 2014.
The Uber CEO says it isn’t the right time to jump into the cryptocurrency bandwagon. Khosrowshahi highlighted the environmental impact of crypto mining as it consumes an enormous amount of electricity, as well as the high costs for exchanges involving cryptocurrencies.
Major companies are hesitating to take up cryptocurrencies during transactions due to their high volatility. But then again, a new trend has been observed. Microsoft, in 2014, began accepting bitcoin as a form of payment for its online store. And this year in January, Tesla announced dogecoin as a form of payment for its merchandise. WholeFoods, owned by Amazon, and Starbucks are accepting bitcoin for purchases.