Uber scraps commission, leaves fare negotiation to passengers

Uber scraps commission, leaves fare negotiation to passengers

Feb 19, 2025, 04.01 AM IST

Chennai: Uber made a major change in its fare model by scrapping commission charges for auto drivers and switching to a fixed subscription-fee system, similar to Namma Yatri and Rapido. More significantly, fares displayed in the app will be only suggestive, with final pricing left to direct negotiation between drivers and passengers, as the platform will no longer intervene in fare disputes.

In a notification on Tuesday, the platform said it will now act only as a tech intermediary between passengers and drivers. An Uber spokesperson said the shift aligns with the industry-wide move towards subscription-based models and ensures the company remains competitive. However, Uber did not disclose how much will be charged as a daily subscription or platform fee from its drivers from this month-end.

Auto drivers on other platforms currently pay 25 to 30 per shift, after which they retain the full fare collected from passengers. There are no commission deductions, no cap on the number of trips and earnings depend entirely on workload. Previously, Uber deducted 15% to 40% per ride, leading to discontent and a partial boycott in Chennai.

Also, Tuesday’s notification said that Uber suggests a fare, but the final amount is decided by the driver and customer. Passengers will have the option to walk away from a ride with no cancellation charges if they do not agree on a fare. Uber advised riders to discuss concerns directly with drivers.

Additionally, all payments must now be made directly to the driver in cash or via UPI. Digital payment options such as credit/debit cards, Uber-integrated UPI payments and Uber credits will no longer be available. Promotions and discounts will also not apply to auto rides.

With Uber stepping back, booking an auto through the app is now like hailing one from the street. "Fare control is gone, leaving passengers, especially newcomers, vulnerable to overcharging," said D Ramakrishnan, a resident-activist from Adambakkam.

Uber, however, said it would continue to address safety concerns.This story had continued from a page 1 story in the newspaper. For your reading convenience we have added it below.

Passengers, drivers to fix Uber auto fares

Uber on Tuesday announced changes in its fare model scrapping commission charges for auto drivers and switching to a fixed subscription-fee system, similar to Namma Yatri and Rapido, reports Ram Sundaram. Fares displayed in the app will be only suggestive, with final pricing to be negotiated between drivers and passengers. The platform will no longer intervene in fare disputes. An Uber spokesperson said the shift aligns with the industry-wide move towards subscription-based models.