Uber makes autorickshaw rides 'cash only' as competition heats up. Can you pay via UPI?

The company, in a blog post, said it will help riders connect with nearby drivers and suggest fares but the final amount would be decided by the driver and the rider.

In a significant change, Uber said it is moving away from a commission-based model to a subscription-based one for autorickshaw drivers in India, the ride-hailing company said.

The new policy is similar to its local rivals in the country and comes amid a growing competition from smaller players.

The company, in a blog post, said it will help riders connect with nearby drivers and suggest fares but the final amount would be decided by the driver and the rider.

A company spokesperson said the company made the shift as it did not want "to be at a competitive disadvantage".

News publication Inc42 was the first to report the development earlier on Tuesday.

High commissions charged by ride-hailing applications Ola Consumer and Uber have been a pain point for their network of drivers, with many holding protests in recent years.

Uber's move also follows newer but smaller rivals Rapido and Namma Yatri, who do not charge their three-wheeler rickshaw drivers any commission and instead take a daily or weekly subscription fee.

It also comes as ride-hailing platforms seek clarity on tax liabilities, following an authority's move that a model like Namma Yatri would not be required to pay taxes as it connected drivers with users, multiple local media publications reported last year.

A web of varying regulations across Indian states, particularly on fares, has also been a pain point for Uber.

Can you still pay via UPI?

The firm said the service is "independent of Uber" and no payments through the app will take place. The riders can pay the driver through cash or UPI.  No cancellation charges or commission will be levied by Uber, adding that credits and promotions also won't be applicable.

What about disputes?

Uber is now moving away from taking any responsibility over fare disputes. The company said it will only suggest a fare, but the final fare is up to the rider and the driver to agree upon. The firm said all the disagreements will have to resolved directly with the riders as they understand the local conditions best.

What if there are safety concerns?

On safety, the company said it is a "top priority" and if the riders have any concern, they should immediately report through the app.

How to change payment mode on app to cash?

Before booking a ride, users need to go to the payments option on the app. Select cash and then start the search for rides. Without changing the payments mode to cash, riders won't be able to book a ride.

With Reuters inputs