Uber Introduces Subscription Model for Auto Drivers in India: What Riders Need to Know

In a strategic shift, Uber has transitioned from a commission-based system to a subscription-based model for auto rickshaw drivers in India. Effective February 18, 2025, this change aims to enhance competitiveness and address driver concerns over high commissions.

Uber Auto Subscription-Based Model

• For Drivers: Auto drivers now pay a fixed subscription fee to access Uber’s platform, eliminating per-trip commissions.

• For Riders: Uber will suggest fares, but the final amount is determined through direct negotiation between the rider and driver.

Payment Methods

• Cash Transactions: All auto rides are now cash-only. Riders must pay drivers directly in cash or via UPI using the driver’s UPI ID.

• Digital Payments: Payments through credit/debit cards, integrated UPI via the Uber app, or Uber credits are no longer accepted for auto rides.

Implications for Riders and Drivers

For Riders

• Fare Negotiation: Riders have the flexibility to negotiate fares directly with drivers, potentially leading to more competitive pricing.

• Payment Flexibility: The acceptance of UPI payments via the driver’s ID offers a convenient alternative to cash.

For Drivers

• Earnings Control: By eliminating per-trip commissions, drivers retain a larger portion of their earnings after the subscription fee.

• Operational Independence: Drivers can set fares in agreement with riders, providing greater autonomy over their services.

Conclusion

Uber’s adoption of a subscription-based model for auto services in India marks a significant change in its operational strategy. This move aligns with industry trends and aims to create a more equitable environment for drivers while offering riders flexibility in fare negotiations and payment methods.