Uber cuts fares, rethinks commission per ride in India

This article was originally published in Rest of World, which covers technology’s impact outside the West.

India’s homegrown ride-hailing startups are forcing Uber to rethink its strategy.

In February, the Silicon Valley giant ditched its commission-based pricing for two- and three-wheeler segments, allowing drivers to pay as little as Rs 9 for a daily subscription.

An Uber spokesperson said the company had recognised the market trend set by rivals and had adopted a similar strategy in the low-cost mobility segment to remain competitive. The spokesperson did not comment on whether Uber would replicate its commission-free policy for cabs. In the cab segment, drivers say Uber has slashed fares by 40% to retain its customer base, leaving them with little cash after completing rides.

Mobility experts believe the shift to subscription models could alter ride-hailing economics globally. But as Uber cuts fares to hold on to its customers in India, they warn that deepening price wars could stifle the growth of upstarts and worsen drivers’ working conditions. Drivers, meanwhile, believe the innovative pricing models are temporary bait to lure them.

“Any uptick in growth, particularly in offering different platforms with varying attributes, is an interesting development for a large market like India,” D Dhanuraj, a mobility expert and founder of an...

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