According to the ride-hailing company, this move follows a broader industry trend, as competitors like Ola and Rapido have already adopted similar approaches.
The update was communicated to users through an in-app notification on February 18, 2025. Uber clarified that its role will be limited to connecting riders with nearby auto drivers, and it will not be responsible for the service itself.
As a result, all auto rides will now require direct payment to the driver in cash or via UPI. Digital payment options such as credit and debit cards, as well as Uber credits, will no longer be accepted. Although Uber will suggest a fare, the final amount will be determined through negotiation between the rider and the driver.
Uber emphasized that no trip-level commission will be charged to drivers, ensuring that they receive the full fare amount. Additionally, the company will not levy cancellation charges and will not intervene in fare disputes between riders and drivers.
Since Uber will not manage the transactions or ride operations, it will no longer collect GST from riders or drivers for auto trips. The company has reassured riders that, despite these changes, they can still report safety concerns through the app.
Uber previously tested this model in six cities, including Chennai, Kochi, and Visakhapatnam, in a pilot program launched last April. Competitors such as Ola and Rapido have also implemented similar models to address concerns raised by drivers over commission rates.
(Edited by : Vivek Dubey)
