Uber, one of the largest ride-hailing platforms in the world has brought about a major change to on of their crucial segment on the platform, Uber Auto.
As per this new change, Uber has decided to move to a subscription model, or a Software-as-a-Service (SaaS) model, from its previous commission model for your auto rides in India.
Autos, similar to cab services on the application used to run on the system, where Uber charges a commission from the total fare at the end of the journey, here, Uber suggests a fare, which the user is liable to pay.
While the system stays the same for cabs, it has now changed for autos. In the notification to users, Uber has changed its position to an intermediary platform, that does not get involved with the fares levied.
What Is This New Model?
This model is nothing new, as other ride-hailing services including Rapido have implemented the subscription model, where the auto drivers pay a certain fee to the platform, to be on the platform, as use its network, to access passengers.
This, therefore, detaches the user from the application.
It benefits drivers, but, whether it will benefit users, is something that remains to be seen.
The New Model’s Features
In the notification, the company explained the new Auto Model, as follows:
Uber is making a major shift with its new Auto model, moving towards a SaaS (Software-as-a-Service) approach. Here’s what’s different:
• Uber will connect you with nearby drivers, but the service itself is independent of Uber.
• No digital payments – riders must pay the driver directly in cash or via UPI.
• Uber credits and promotions cannot be used for auto trips. Ensure Uber credits are turned off before booking.
• No trip level commission is charged to drivers-Uber only provides the platform.
• Uber does not levy any cancellation charges.
• Uber suggests a fare, but the final amount is decided by the driver and you.
• We’re not involved in fare related disputes between riders and drivers but we’re here for safety concerns.
• Drivers operate independently and Uber’s role is limited to connecting riders with drivers.
New Model, Old Problem?
This would put the onus of deciding the fares on the driver and the customer, as Uber would not partake in the ‘negotiations’. And users, like before, cannot pay it through the application, and would instead have to pay in cash or through a UPI transaction.
This change in the model raises some inherent questions, that have already been raised by some X users, reacting to the development.
One user said, “Uber’s new notification:- PAYMENT CASH ONLY & NEGOTIABLE. We reached back where we started. Now again auto drivers will do as they please. When you have to pay in cash, then what is the need for Ola or Uber?”
