Uber is moving away from its model based on the commission for motorized three-wheeled motorized ricksome drivers in response to increased competition from local Rapido and Namma Yatri rivals. The carpooling giant will rather charge drivers of daily costs to use the platform and connect to cyclists.
The change of business model is the last update of Uber’s activities in India to try to operate the margins.
In 2015, Uber first launched its rickshaft service on the market, but suspended shortly after. The service was later remarkable in 2018.
India is not the only market where Uber tries this model, we understand. The company previously presented its bicycle and motor pousse services based on the Bangladesh subscription and certain Southeast Asian markets, a Uber spokesperson confirmed in Techcrunch.
The update, which was communicated by e-mail to the riders, strikes all the rush drivers in India after having broadcast it quietly as a pilot for a few months. Car growth Cover up to 25% of all motorized trips In India.
Uber commission costs are generally between 25% and 40% of each rate, although the company said Its service costs “vary from one trip to another”. Rapid and Namma Yatri do not charge a commission; Their model is more based on a subscription.
Now Uber follows suit. Automatic rush rush drivers on its platform in India must pay fees between $ 0.23 and $ 0.46 (20-40 Indian rupees) per day, depending on the city in which they are, includes Techcrunch.
As Uber deleted the commissions for the ripe pousse drivers, cyclists will have to pay the driver directly in cash or digitally via the unified payment interface supported by the Indian government (UPI). Uber credits and promotions will not apply to car trips, and cyclists will not be taken from cancellation fees.
Uber will not show either that the end amounts will have to pay at the end of their trip – but that will simply suggest a price and the driver can set his own prices.
“We are not involved in disputes linked to prices between cyclists and drivers”, Uber note On a FAQ page, suggesting that bargaining will become common among drivers and Autrickshaw cyclists.
In addition, Uber said it would continue to allow runners to raise security problems via its application.
Although it is unlikely that this model is reflected in other markets like the United States, the change reflects Uber’s mission to connect independent entrepreneurs to riders.
The update is limited to car growth pousses, which means that four-wheeled taxis in India always operate in the existing commission model.
However, Uber continues to experiment with different models in more traditional ruin, including a flexible pricing service in more than a dozen Indian cities and simultaneous journeys to remain competitive on the most populous market in the world. Today, Uber faces strong competition from Softbank, on Ola’s back, Westbridge Capital and Nexus Venture, supported by Rapido, and Namma Yatri, as well as various rickshade and independent taxi drivers.
