Feb 18 (Reuters) - Ride-hailing platform Uber ( UBER )
has moved to a zero-commission model for its autorickshaw
drivers in India and will instead charge them a subscription
fee, mirroring a strategy followed by local rivals as
competition intensifies.
Uber ( UBER ) said it will now only connect users with nearby drivers
and will suggest a fare but the final amount would be decided by
the driver and the rider, the company said in a blog post.
A company spokesperson said the company made the shift as it
did not want "to be at a competitive disadvantage".
News publication Inc42 was the first to report the
development earlier on Tuesday.
High commissions charged by ride-hailing applications Ola
Consumer and Uber ( UBER ) have been a pain point for their network of
drivers, with many holding protests in recent years.
Uber's ( UBER ) move also follows newer but smaller rivals Rapido and
Namma Yatri, who do not charge their three-wheeler rickshaw
drivers any commission and instead take a daily or weekly
subscription fee.
It also comes as ride-hailing platforms seek clarity on tax
liabilities, following an authority's move that a model like
Namma Yatri would not be required to pay taxes as it connected
drivers with users, multiple local media publications reported
last year.
A web of varying regulations across Indian states,
particularly on fares, has also been a pain point for Uber ( UBER ).