Ride-hailing platform Uber has rolled out a subscription-based model for auto drivers. This comes after its peers Namma Yatri and Rapido have also moved to the same model.
“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,” said the Uber spokesperson.
The competition in the ride-hailing space in India has been heating up as Uber competes with local players including Rapido, Ola and Namma Yatri. In 2024, Rapido had also extended its Software-as-a-Service (SaaS)-based zero-commission model to auto drivers.
It also 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.
The ride-hailing company had 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.
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.
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.