Uber announces zero commission model for auto drivers like Rapido

All of this comes at a time when many ride hailing platforms have witnessed multiple strikes from drivers over the years due to the commissions they charge.

Ride hailing service provider Uber has brought in a software-as-a-service (SaaS)-based zero commission model for auto drivers in Indi, the company announced in a blog post on Monday, February 17, 2025.

The app will only suggest fares for a ride, but this would be finalised with a negotiation between the driver and the rider. (AP)

Under this model, auto drivers will pay a fixed subscription fee to Uber rather than paying a commission per trip.

This comes a year after rival Rapido expanded its subscription fee-based model to autos and was announced as a notification on the app on Tuesday, February 18, 2025.

All of this comes at a time when many ride hailing platforms like Uber and Ola have witnessed multiple strikes from drivers over the years due to the commissions they charge.

Multiple complaints from customers about service issues have also been floating on social media.

What it means for customers

The app will only suggest fares for a ride, but this would be finalised with a negotiation between the driver and the rider.

Customers need to pay the driver directly in cash or via UPI (using the driver’s UPI ID). Digital payment methods like credit/debit cards/ integrated UPI payments through Uber app or Uber credits cannot be used, ensuring that 100% of the payments go directly to the driver.

Uber will also not be liable for ride cancellations from the driver’s end or drivers refusing to provide transportation services at any point.

Since Uber is no longer taking control of the rides, no GST will be collected from customers or the drivers for auto trips.

However, the company has said that safety concerns during a ride can be reported through the app.

Uber had initiated a pilot version of such a subscription-based plan for auto rickshaw drivers last April. This was in six cities, starting from Chennai, Kochi and Visakhapatnam.

Uber also issued a disclaimer that it will solely act as a technology platform connecting riders with independent driver partners and that it won't provide any transportation services. It will also no longer have control on the execution, completion or quality of the rides.