Uber starts subscription plans for auto drivers, bins commission model

Leading ride-hailing platform Uber has shifted to a software-as-a-service (SaaS) subscription-based model for its auto drivers, from a commission-based model.

A notification on the Uber app informed users that starting February 18, all Uber auto rides will be cash-only.

“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 spokesperson said.

Subscription-based model for auto drivers is being offered by ride-hailing apps such as Rapido, Namma Yatri and others.

“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,” the company said in a separate blog post.

It further said no trip-level commission is charged to drivers, and made it clear that Uber only provides the platform.

“Uber does not levy any cancellation charges, Uber suggests a fare, but the final amount is decided by the driver and you,” it added.

Payments will now be made directly to drivers, in cash or via UPI, and digital payment methods through the Uber app, including Uber Balance will no longer be applicable for Uber Auto, with the new model.

Reacting to Uber’s shift to a SaaS model, the Telangana Gig and Platform Workers Union (TGPWU) and Indian Federation of App-based Transport Workers (IFAT) leadership, in a statement, said that they will closely monitor the implementation of Uber’s new model and assess its impact on auto drivers’ earnings and working conditions.