Following Rapido's Lead, Uber Introduces Zero-Commission Model for Drivers

Nitin Konde, Varun Bhardwaj

18 Feb 2025 — 2 min read

Uber Follows Rapido, Launches Zero-Commission Model for Drivers

More than a year after rival Rapido extended its subscription fee-based strategy to vehicles, ride-hailing service provider Uber has introduced a software-as-a-service (SaaS)-based zero commission model for drivers throughout India.

According to a notice on the app, Uber will only serve as a technological platform that links passengers and independent driver partners as of February 18. It further stated that it will not offer any kind of transportation. An Uber representative informed a media outlet, "The company has decided to align its approach accordingly in order to avoid being at a competitive disadvantage, given the industry's shift towards a subscription-based model for drivers."

New Business Strategy by Uber

Only the fare for a journey will be suggested by the Uber app; the rider and driver will have to negotiate the final price. The corporation will no longer be in charge of the rides' quality, execution, or completion. The rules also stated that the business would not be held responsible for any ride cancellations made by drivers or their refusal to offer transportation services at any time.

Last April, the massive ride-hailing company tested a subscription-based scheme for drivers of autorickshaws on its network. Uber launched the service in six locations, starting with Visakhapatnam, Chennai, and Kochi. It is important to note that over the years, drivers have frequently gone on strike against ride-hailing services like Uber and Ola because of the commissions these companies charge. In the meantime, this has also led to a deluge of client complaints over service problems on social media.

Mobility will be Redefined by Ride-Hailing Trends in 2025

Nowadays, consumers have many options and are discriminating. The primary differentiation for standing out from the competition and optimising the customer experience will be customer centricity. Despite its ability to facilitate customer happiness, technology is merely a tool for improving the customer experience. Therefore, brands that give customers more control over the car, price, and driver instead of relying only on technology to decide these factors will have an advantage over their rivals.

Ride-hailing has emerged as a popular freelance option as hybrid employment models and a desire for flexibility gain traction. In order to become a popular job marketplace, many ride-hailing businesses are now including health and leave benefits in their drivers' contracts.

A research study released by a well-known media company states that in 2025, businesses would place a greater emphasis on underdeveloped suburban markets and Tier 2 and Tier 3 cities by making partnerships and infrastructure investments in these areas. Rapid technical and infrastructure development, a large consumer base, and inadequate public transit infrastructures all point to the growth of ride-hailing companies in these locations.