News Summary

Uber is transitioning from a commission-based model to a daily fee structure for auto rickshaw drivers in India due to mounting competition from local companies like Rapido and Namma Yatri. This approach, which Uber has piloted for several months, involves drivers paying a daily fee of $0.23 to $0.46 based on their city. This model aligns with subscription-based strategies seen in other markets such as Bangladesh and Southeast Asia. The move allows drivers to independently set fares, with Uber ceasing to mediate fare disputes. The strategy underscores Uber’s aim to connect independent contractors with riders, though it is currently exclusive to auto rickshaws, with four-wheeler services still under the commission model.