Uber rolls out zero commission model for auto drivers across India
The move comes after Rapido and Namma Yatri introduced similar models that helped the ride-hailing platforms attract more drivers.
Ride-hailing platform Uber on Tuesday rolled out a subscription-based model for auto drivers across the country, following in the footsteps of its peers Rapido and Namma Yatri.
Inc42 was the first to report on the matter.
“Given the industry’s shift towards a subscription-based model for drivers, we have decided to align our approach accordingly so as not to be at a competitive disadvantage,” an Uber spokesperson told YourStory.
The shift to a software-as-a-service (SaaS) or a subscription model comes amidst rising competition in the Indian cab aggregation segment, where the US-based Uber competes with homegrown companies such as Rapido, Ola Consumer, and Namma Yatri.
Rapido in February 2024 had expanded its zero commission model for auto drivers to bring offline drivers onto its platforms. It launched this model to its cab drivers in December 2023.
According to an Economic Times report from April 2024, Uber had rolled out a subscription-based model in six cities, including Chennai, Kochi, and Visakhapatnam. Ola Consumer had rolled out the model in Delhi-NCR, Mumbai, Bengaluru, and Hyderabad.
This marked a shift from the traditional commission-based revenue model imposed by these companies where the platform kept a share of the fare for every ride as commission.
Under the subscription model, the aggregator’s role is limited to connecting drivers with customers.
Additionally, this model is comparatively more attractive to drivers as they earn the entire fee of the trip and their earnings are not impacted by commissions. It also encourages drivers to take more trips, having a positive impact on reducing ride cancellations for customers.
Edited by Suman Singh
