In a significant move, the ride-hailing giant Uber changed its operation model for autorickshaw drivers. It removed the commission-based system model and introduced the Saas (Software-as-a-Service) model. As per the shift, all auto rides booked through the Uber app are now cash-only. The change came into effect on February 18, 2025.
Users were informed about the change via a notification on the Uber app. An Uber spokesperson toled The New Indian Express news agency that, “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.”
Under this model, auto drivers pay a fixed fee to use Uber. The company connects drivers to nearby users and suggests a fare, which the driver and app users decide on. Uber will not impose any commission on drivers or charge riders a cancellation fee.
The ride-hailing company Uber’s move is followed by its rivals Namma Yatri and Rapido, founded by Aravind Sanka, who is on the 40 under 40 list. These companies don’t charge commissions from their auto-rickshaw drivers and take a daily or weekly subscription fee. The authority also waived tax from Rapido and Namma Yatri due to their model.
