Cab hailing service Uber has made a major policy shift on its auto-rickshaw services. Auto rides under the new system have to be paid in cash or UPI directly to the driver. This implies that Uber will not be taking part in financial transactions between the riders and the auto drivers. The company has done this under its "Software as a Service" (SaaS) model, which has been working since February 18.
No Commission Charge for Auto Drivers
Uber has made it official in a blog post that it will no longer be taking commissions from auto-rickshaw drivers. The company further confirmed that it will not be charging cancellation fees to drivers and riders.
How Uber Auto Now Works
- When a rider hires an auto on Uber, the company matches them with drivers in their vicinity.
- The payment must be made to the driver in UPI or cash directly.
- Uber credit and promo discounts will not be applicable for these rides.
- Although Uber offers a price estimate when making a reservation, the price is mutually agreed upon between the passenger and driver.
- Self-driving car drivers will now drive on their own, with Uber acting only as an intermediary.
Following the Industry Trend
This move follows competitors Rapido and Ola, who years ago transitioned to the SaaS model as opposed to a commission model. Instead of a percentage-based commission, drivers will pay a fixed fee to use the platform. Uber's model gives automobile drivers greater freedom, eliminating commission charges and giving them control over payments and fares.
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