Uber Ditches Commissioners in favor of daily rates for Rickshaw drivers in India

Uber is moving away from its model based on the Rickshaw motorized drivers in India in India in response to the increase in the competition of Rapido and Namma Yatri local rivals. Instead, the transport giant will charge drivers a daily rate to use the platform and connect with passengers.

Business model change is the latest Uber business update in India in an attempt to make the margins work.

In 2015, Uber first launched its auto-jaww service in the market, but suspended shortly after. The service was later relaunched In 2018.

India is not the only market where Uber is testing this model, we understand. Previously, the company presented its bicycle services and Subscription -based Rickshaw -based on Bangladesh and some Southeast Asia markets, an Uber spokesman confirmed to TechCrunch.

The update, which was communicated through an email to the passengers, is reaching all auto-jack drivers in India after executing it in silence as a pilot for a few months. Automatic Rickshaws Cover up to 25% of all motorized trips In India.

The charges of the Uber commission are usually between 25% and 40% of each travel rate, although the company says Its service rate “varies traveling to trip”. Rapid and Namma Yatri do not charge a commission; Your model is more subscription.

Now Uber is following its example. Rickshaw automatic drivers on their platform in India must pay a rate between $ 0.23- $ 0.46 (20-40 Indian rupees) per day, depending on the city where they are located, Techcrunch understands.

As Uber has eliminated the commissions for Authorickshaw drivers, passengers must pay the driver directly or digitally through the Indian government's unified payments interface (UPI). Uber's credits and promotions will not request automotive trips, and passengers will not be imposed with cancellation charges.

Uber will also not show the final amount that runners will have to pay at the end of their trip; Instead, it will only suggest a rate and the driver can establish his own rates.

“We are not involved in disputes related to the rate between runners and drivers,” Uber noted On a frequently asked questions page, suggest that dribbles will become common among authorickshaw drivers and riders.

In addition, Uber said it would continue to allow cyclists to raise security concerns through their application.

Although this model is unlikely to translate into other markets such as the US, the change reflects Uber's mission to connect independent contractors with passengers.

The update is limited to automatic Rickshaws, which means that four -wheeled taxis in India still operate under the existing commission model.

However, Uber continues to experiment with different models on the more traditional trip, including a flexible price service in more than a dozen Indian cities and concurrent trips to stay competitive in the world's most populated market. Today, Uber faces a tough competition of the tastes of Ola, Westbridge Capital and Nexus Venture Partners, backed fast, and Namma Yatri invested in Google, as well as several Rickshaws and independent taxi drivers.