Uber has announced a significant shift in its Auto service model, transitioning to a Software-as-a-Service (SaaS) approach that fundamentally changes how riders interact with auto drivers. This new model, which prioritizes direct payments and driver independence, represents a departure from Uber’s traditional ride-hailing structure.
Under the new system, Uber will serve primarily as a connection platform between riders and auto drivers, stepping back from its previous involvement in payment processing and fare regulation. The company will no longer charge any commission on auto rides, ensuring that 100% of the fare goes directly to the drivers.
Key changes in the service include the elimination of digital payments through the Uber app. Riders will now need to pay drivers directly, either in cash or through UPI payments using the driver’s UPI ID. The platform will continue to suggest fares, but the final amount will be determined through direct negotiation between riders and drivers.
The new model also removes several traditional Uber features from auto rides. Uber credits and promotions will not be applicable, and the platform will not charge cancellation fees. Additionally, GST will not be collected on auto trips, and the company will not provide tax invoices.
While Uber will maintain its safety protocols and continue to address safety-related concerns, the company will not intervene in fare-related disputes between riders and drivers. This aligns with the platform’s new role as a facilitator rather than a service provider.
Key Features of Uber’s New Auto SaaS Model:
- Payment Methods:
- Direct cash payments
- UPI transfers to drivers
- No digital payments through Uber app
- No Uber credits or promotions
- Financial Structure:
- Zero commission charges
- No cancellation fees
- No GST application
- No tax invoices provided
- Service Features:
- Suggested fare system
- Direct fare negotiation between riders and drivers
- No digital payment integration
- Safety monitoring maintained
- No involvement in fare disputes
- Driver Independence:
- Complete payment retention
- Fare negotiation freedom
- Independent operation
- Direct payment collection
