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Uber’s Big Move
Uber has scrapped commission charges for auto drivers and switched to a fixed subscription-fee system, similar to Namma Yatri, Rapido, and Ola. In a significant departure from its traditional model, the fares displayed in the Uber app will now be indicative rather than fixed, leaving the final price to be negotiated directly between drivers and passengers. The platform will no longer intervene in fare disputes, repositioning itself purely as a technology intermediary.
The Industry-Wide Shift
This move follows a broader trend in the ride-hailing sector, where platforms are increasingly experimenting with zero-commission structures:
- Rapido announced in February 2024 that it would transition to a zero-commission model to attract more offline drivers.
- Ola introduced subscription-based plans for auto drivers in April 2024 across key cities like Delhi-NCR, Mumbai, Bengaluru, and Hyderabad.
Previously, aggregators charged drivers commissions ranging from 20% to 40% per ride. With this shift, more platforms are moving towards a model that prioritises driver earnings and flexibility.
Namma Yatri’s Disruptive Model
Namma Yatri, an open and community-driven platform backed by the government’s ONDC network, has been at the forefront of this transformation. In April 2024, the platform launched a lifetime zero-commission model for cab drivers in Bengaluru, offering them:
- Free usage until October 2024.
- A flat ₹90 daily subscription fee thereafter, regardless of the number of rides.
Previously, Namma Yatri had introduced two plans for auto drivers:
- ₹25 per day for unlimited rides.
- ₹3.50 per ride for up to 10 trips, with additional rides at no extra cost.
For drivers, this model provides greater earnings stability, removing commission deductions that previously ate into their profits.
What’s in It for Aggregators?
While eliminating commissions may seem like a revenue loss, ride-hailing companies are now exploring alternative monetisation strategies, such as:
- Subscription Fees: A steady revenue stream from daily driver subscriptions.
- Advertising & Partnerships: Displaying ads in apps and collaborating with brands.
- Premium Rider Services: Monetising features like surge-free rides and priority bookings.
The Future of Ride-Hailing
With competition intensifying, more companies may adopt hybrid pricing strategies, allowing drivers to choose between commission or subscription-based models. Additionally, deeper integration with ONDC could further disrupt traditional aggregators.
For now, one thing is clear—Namma Yatri’s zero-commission model is reshaping the ride-hailing industry, and the big players have no choice but to keep up.
