Delhi February 19 : Ride hailing service provider Uber has brought in a software-as-a-service (SaaS)-based zero commission model for auto drivers in India, Inc42 reported. Under this model, auto drivers will pay a fixed subscription fee to Uber rather than paying a commission per trip.
This comes a year after rival Rapido expanded its subscription fee-based model to autos and was announced as a notification on the app on Tuesday, February 18, 2025.
“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,” the report quoted an Uber spokesperson as saying.
All of this comes at a time when many ride hailing platforms like Uber and Ola have witnessed multiple strikes from drivers over the years due to the commissions they charge.
Multiple complaints from customers about service issues have also been floating on social media.
What is means for customers
The app will only suggest fares for a ride, but this would be finalised with a negotiation between the driver and the rider.
Uber will also not be liable for ride cancellations from the driver’s end or drivers refusing to provide transportation services at any point.
Uber had initiated a pilot version of such a subscription-based plan for auto rickshaw drivers last April. This was in six cities, starting from Chennai, Kochi and Visakhapatnam.
Uber also issued a disclaimer that it will solely act as a technology platform connecting riders with independent driver partners and that it won’t provide any transportation services. It will also no longer have control on the execution, completion or quality of the rides.
Summary: Uber announces a zero commission model for auto drivers, similar to Rapido, aiming to improve earnings for drivers and attract more participants.