Uber ditches commissions in favor of daily fees for rickshaw drivers in India

Uber is moving away from its commission-based model for three-wheeled motorized rickshaw drivers in India in response to increased competition from local rivals Rapido and Namma Yatri. The ride-hailing giant will instead charge drivers a daily fee to use the platform and connect to riders. The business model change is the latest update to Uber’s business in India in an attempt to make the margins work. In 2015, Uber first launched its auto-rickshaw service in the market but suspended shortly after. The service was later relaunched in 2018. India isn’t the only market where Uber is trying out this model, we understand. The company earlier introduced its subscription-based bike and auto-rickshaw services in Bangladesh and some Southeast Asian markets, a spokesperson for Uber confirmed to TechCrunch. The update, which was communicated through an email to riders, is hitting all auto-rickshaw drivers in India after quietly running it as a pilot for some months. Auto rickshaws cover up t ... Read full article.