Uber has made a major change to its business model, and it could reshape the ride-hailing industry. Instead of taking a commission from drivers, Uber will now let them keep 100% of their earnings. In return, drivers will pay a fixed subscription fee to use the platform.

Why Is Uber Doing This?

The ride-hailing market is evolving, with competitors like Rapido and Namma Yatri already using similar models. This shift helps Uber:

1. Improve driver retention by allowing them to earn more

2. Ensure better service availability by keeping drivers engaged

3. Stay competitive in an increasingly crowded market

What It Means for Riders and Drivers?

For riders, this could lead to unpredictable fares, as drivers now have more control over pricing. Unlike the fixed rates Uber previously set, fares will be based on direct negotiations.

For drivers, it means complete control over their earnings, but they will have to pay Uber a fee upfront. It offers higher earning potential but also comes with financial risks.

Will This Model Work?

This change brings challenges. Riders may find fare variability inconvenient, and Uber needs to ensure profitability without commission-based revenue. Regulatory hurdles could also complicate the transition.

Uber's shift signals a major transformation in India's ride-hailing market. Whether this model succeeds will depend on how both drivers and riders adapt to the new system.