Uber has announced a major shift in its operational model for auto-rickshaw drivers in India. Moving away from its traditional commission-based structure, the company will now implement a daily fee system. This change, effective immediately, requires drivers to pay between $0.23 and $0.46 per day, depending on their city. The decision marks a strategic move by Uber as it seeks to adapt to the unique challenges of India’s competitive ride-hailing market.
This update applies exclusively to auto-rickshaw drivers; four-wheeler cabs will continue under the existing commission model. By adopting this approach, Uber aligns itself with local competitors such as Rapido and Namma Yatri, who operate on a similar subscription-based framework. Uber aims to enhance its margins and competitiveness in India, a market characterized by its vast population and intense local rivalry.
Uber first ventured into the Indian auto-rickshaw sector in 2015, only to suspend the service shortly after. It made a comeback in 2018, and this latest change is part of ongoing efforts to refine its business strategy. The company continues to explore innovative models within the broader ride-hailing industry, having introduced flexible pricing services in over a dozen Indian cities.
In this new model, Uber will not engage in fare-related disputes between riders and drivers, potentially leading to increased haggling over prices. However, the platform maintains its commitment to safety by allowing riders to report concerns through its app. This initiative follows a period of quiet piloting, during which Uber assessed the viability of the daily fee system before rolling it out nationwide.
Leave a Reply