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Uber Ditches commission to support daily rates for Indian rickshaw drivers

TechBrunchBy TechBrunchFebruary 19, 20253 Mins Read
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Uber is moving away from the committee-based model of India's three-wheel electric Rick Show drivers in response to growing competition with local rivals Rapido and Namma Yatri. The riding giant will instead charge drivers daily fees to connect to riders using the platform.

Business model change is the latest update of Uber's business in India to make margin work.

In 2015, Uber first launched auto-rickshaw services on the market, but quickly stopped. The service was later rebooted in 2018.

We understand that Uber is not the only market that has tried this model. The company previously introduced subscription-based bicycle and auto rickshaw services to Bangladesh, and several Southeast Asian markets.

The update communicated via email to riders has hit all the drivers of auto rickshaws in India after running quietly as a pilot for several months. Auto Rickshaws covers up to 25% of all electric travel in India.

Uber's committee bills are typically between 25% and 40% of each ride fee, but the service charges say “varies from trip to trip.” Rapid and Nanmayatri do not request a committee. Their model is more subscription-based.

Now Uber is following suits. Auto rickshaw drivers on Indian platforms must pay a fee between $0.23 and $0.46 (20-40 Indian Rupees) per day.

As Uber has eliminated the fees for drivers for autorickshaws, riders will have to pay directly to the drivers either cash or digitally via the Indian government-sponsored Unified Payments Interface (UPI). Uber credits and promotions will not be applied for automated travel, and riders will not be charged for cancellation fees.

Uber also does not display the final amount that riders must pay at the end of their trip. Instead, simply suggest fares and the driver can set his own rate.

“We are not involved in fare-related disputes between riders and drivers,” Uber said on its FAQ page, suggesting that hugging is becoming more common between drivers and riders of autorickshaws. Masu.

Additionally, Uber said it will continue to allow riders to raise safety concerns through the app.

Though it is unlikely that this model will be translated into other markets like the US, this change reflects Uber's mission to connect independent contractors to riders.

This update is limited to auto-rickshaws. In other words, Indian four-wheel cabs still operate under existing committee models.

However, Uber has a range of more traditional rides, including flexible pricing services in over 12 Indian cities to stay competitive in Indian cities and the world's most populous markets. I'm continuing to try out the models. Today, Uber faces tough competition with Softbank-backed Ola, Westbridge Capital, Nexus Venture Partners-backed Rapido, Google-invested Namma Yatri, and a range of independent autorickshaws and taxi drivers. .



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