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Uber adopts smaller rivals' model for India autorickshaw rides to weather competition
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Uber adopts smaller rivals' model for India autorickshaw rides to weather competition
Feb 18, 2025 6:52 AM

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 ).

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