By Haripriya Suresh
(Reuters) – 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”.
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.
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.
(Reporting by Haripriya Suresh and Nandan Mandayam in Bengaluru; Editing by Krishna Chandra Eluri)
