Ride hailing platform Uber is changing the way it works with auto drivers, switching from a commission-based system to a subscription-based model, similar to software-as-a-service (SaaS). Its app’s notification told users that starting February 18, all auto rides will be in the cash-only mode.
“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,” Uber’s spokesperson listed the reason behind the shift.
Notably, ride-hailing apps, including Rapido, are now offering auto drivers a subscription-based model as an alternative to traditional commission-based systems.
“Uber is making a major shift with its new Auto model, moving towards a SaaS (Software-as-a-Service) approach. Here’s what’s different… Uber will connect you with nearby drivers, but the service itself is independent of Uber,” said the company, in a separate blogpost.
The company further said that no trip-level commission is charged to drivers, and made it clear that the company only provides the platform.
“Uber does not levy any cancellation charges, the company suggests a fare, but the final amount is decided by the driver and you,” said the company.
What Changes For Uber Customers?
- The company will connect you with nearby drivers, but the service will run independently by the drivers.
- Riders will pay drivers directly in cash or via UPI (no digital payments through the app).
- The company credits and promotions will not be valid for auto trips.
- Drivers will not pay commission on trips; The company will only provide the platform.
- The company will not charge cancellation fees.
- The company will suggest a fare, but the driver and rider will agree on the final amount.
- Uber won’t get involved in fare disputes, but will help with safety concerns.
- Drivers will work independently, and Uber’s role will be limited to connecting riders with drivers.
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