Uber is changing its “Auto” model: What this means for users

Uber has announced a significant shift in its auto rickshaw service, moving to a software-as-a-service (SaaS) model, essentially changing how riders book and pay for auto rides. The change is now reflecting in the app.

What is changing and what it means for users

Under the new system, Uber connects riders with nearby drivers, but the service operates independently of Uber’s core platform. Riders will now pay drivers directly in cash or via UPI.
Notably, digital payment methods integrated into the Uber app, including Uber credits and promotions, will no longer be accepted for auto trips. Riders are advised to disable Uber credits before booking an auto.
Furthermore, Uber will not charge drivers a commission for auto trips, and the company will not levy cancellation charges. While Uber suggests a fare, the final amount is determined through an agreement between the rider and driver.

This means that Uber will not be involved in fare disputes, advising riders to resolve such issues directly with the driver. However, Uber emphasises its commitment to safety and encourages riders to report any safety concerns through the app.
Additionally, it should be noted that since Uber only suggests a fare, the company will not offer credits or refunds for auto trips, including those related to fare disputes. No GST will be applied to auto trips, and Uber will not provide tax invoices.
Riders can use the fare suggestion receipt from Uber for reimbursement purposes if necessary.
If riders encounter errors while booking, they are advised to select cash as the payment method and ensure that “Uber balances” are turned off. This new model aims to give 100% of the fare directly to the drivers.