The fight for dominance in India’s booming ₹10,000 crore auto-rickshaw market has reached a new level, with Uber launching a zero-commission, subscription-based model for drivers—just over a year after Rapido took the same route. This shift signals a major disruption in the ride-hailing industry, forcing companies to rethink their business models amid increasing driver dissatisfaction and regulatory scrutiny.
Uber’s move comes at a time when driver strikes, social media outrage over fare manipulation, and regulatory crackdowns on pricing policies have put pressure on ride-hailing giants. With over 2 million auto-rickshaw drivers in India relying on platforms like Uber, Ola, and Rapido for their livelihood, the competition is heating up.
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Rapido, which introduced its flat-fee subscription model in early 2023, has already lured thousands of drivers away from traditional commission-based platforms. Now, Uber is fighting back, eliminating its cut from fares and leaving pricing negotiations directly between drivers and riders.
But will this strategy work? Experts believe the move could help Uber retain its driver base, but it also raises questions about fare inconsistencies, ride cancellations, and service reliability. Meanwhile, Ola, the third big player in the sector, has yet to respond, but pressure is mounting for it to revise its commission-heavy model.
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With Uber’s zero-commission experiment shaking up the market and Rapido aggressively expanding across metros and Tier-2 cities, the battle for India’s auto-rickshaw dominance is far from over. Who will come out on top? Only time will tell.
