If Indians and tourists feel that hailing an Uber car is expensive, they turn to autorickshaw rides. However, with some groups saying compensation isn’t fair for the drivers, Uber India has introduced a new business model that will make both drivers and riders happy.
Nowadays, you cannot just hail a real car via Uber, but also the traditional autorickshaw. Known as tuk-tuks in Thailand and Cambodia, India’s autorickshaws are motorized, three-wheeled vehicles used as taxis in several cities. They are famous in Asia and Africa.
Here’s how it works
Uber will receive zero or no commission anymore for autorickshaw rides using the platform. Instead, it will charge riders a subscription fee.
“Uber is making a major shift with its new Auto model, moving towards a Software as a Service approach,” the company said in its official statement posted on X.
The first term is that Uber will connect riders with drivers of autorickshaws nearby, but the ride will now be independent of Uber.
Digital payments will no longer be allowed. Instead, the rider must pay directly to the driver. Also, Uber credits and promos cannot be used for trips on autorickshaws. However, you must ensure the Uber credits feature is turned off before you book a ride unless you want to regret it in the end.
Furthermore, there will be no trip level commission charged to the drivers. Uber shall be shouldering this.
Uber also won’t levy any cancellation charges.
In other words, while Uber would suggest a fare, the final amount will be decided by you and your driver after the trip before you get off the ride.
However, Uber clarified it will not involve itself in fare disputes, as Uber’s only role is to connect autorickshaw drivers with riders.
Following its competitors
“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,” an Uber spokesperson told the media regarding the matter.
This new approach follows the business models implemented by Uber’s smaller rivals in the area, such as Namma Yatri and Rapido, which do not charge their three-wheeled rickshaw drivers commissions. Instead, they take a daily or weekly subscription fee.
However, Uber has not yet disclosed the amount of the subscription fee, if there is one.
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