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Uber Adopts Zero Commission Model for India Autorickshaw Rides to Weather Competition

Uber Adopts Zero-Commission Model for India Autorickshaw Rides to Weather Competition

Uber said it will now only connect users with nearby drivers and suggest a fare but the final amount would be decided by the driver and the rider.

By Reuters | Updated: 19 February 2025 15:10 IST

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Uber Adopts Zero-Commission Model for India Autorickshaw Rides to Weather Competition

Photo Credit: Reuters

Uber's move also follows newer but smaller rivals Rapido and Namma Yatri

Highlights

Uber said it did not want "to be at a competitive disadvantage"
Zero-commision model is followed by local ride-hailing services
Ride-hailing platforms are seeking clarity on tax liabilities

Ride-hailing platform Uber has moved to a zero-commission model for its autorickshaw drivers in India and will instead charge them a subscription fee, mirroring a strategy followed by local rivals as competition intensifies.

Uber said it will now only connect users with nearby drivers and will suggest a fare but the final amount would be decided by the driver and the rider, the company said in a blog post.

A company spokesperson said the company made the shift as it did not want "to be at a competitive disadvantage".

Ola Joins Uber, Denies Charging iPhone Users Higher Prices in India

News publication Inc42 was the first to report the development earlier on Tuesday.

High commissions charged by ride-hailing applications Ola Consumer and Uber have been a pain point for their network of drivers, with many holding protests in recent years.

Uber's move also follows newer but smaller rivals Rapido and Namma Yatri, who do not charge their three-wheeler rickshaw drivers any commission and instead take a daily or weekly subscription fee.

Uber Denies Implementing Phone Model-Based Pricing in India

It also comes as ride-hailing platforms seek clarity on tax liabilities, following an authority's move that a model like Namma Yatri would not be required to pay taxes as it connected drivers with users, multiple local media publications reported last year.

A web of varying regulations across Indian states, particularly on fares, has also been a pain point for Uber.

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