(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 ).