Exclusive: Uber Follows Rapido, Rolls Out Zero Commission Model For Auto Drivers

Ride hailing service provider Uber has rolled out software-as-a-service (SaaS)-based zero commission model for auto drivers across India, over a year after its rival Rapido expanded its subscription fee-based model to autos.

In a notification on the app, Uber said that starting today (February 18) it will solely act as a technology platform connecting riders with independent driver partners. It added that it will not provide any transportation services.

“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 Inc42.

The Uber app will only suggest fare for a ride, but it would be finalised through a negotiation between the driver and the rider.

The company will no longer have control over the execution, completion or quality of the rides.

The terms further mentioned that the company will not be liable for any ride cancellations from the driver’s end or refusal of drivers to provide their transportation services at any point.

The ride-hailing giant piloted a subscription-based plan for auto rickshaw drivers on its platform last April. Uber had initiated the offering in six cities, commencing with Chennai, Kochi and Visakhapatnam.

It is pertinent to highlight that ride hailing platforms like Uber and Ola have seen numerous strikes by their drivers over the years due to the commissions charged by these platforms. Meanwhile, this has also resulted in social media being flooded with complaints from customers about service issues.

Recently, auto and cab drivers in Chennai announced an indefinite boycott of Ola and Uber over high commissions.

Earlier this year, Uber and Ola received a notice from the Central Consumer Protection Authority (CCPA) over differential pricing for Android and Apple devices.