Uber Switches to Zero-Commission Model in India
Ride-hailing giant Uber has adopted a zero-commission policy for its autorickshaw drivers in India. Instead, the company will charge a subscription fee, aligning with strategies employed by local competitors amidst heightened competition.
Uber's revised model empowers drivers to negotiate fares directly with riders, while Uber solely facilitates connections between them. This shift aims to mitigate "competitive disadvantages," as stated by a company spokesperson.
The move follows complaints from drivers regarding high commissions imposed by Ola Consumer and Uber. Smaller rivals like Rapido and Namma Yatri have gained ground by eliminating commissions and implementing subscription fees.
Uber's decision also coincides with ongoing discussions on tax obligations for ride-hailing platforms. Authorities have suggested that models similar to Namma Yatri, which connect drivers with riders, may be exempt from certain taxes.
Varying regulations across Indian states, especially regarding fares, have posed another challenge for Uber.