[TusharK]

Ride-hailing platforms, Ola and Uber, have rolled out subscription-based plans for auto-rickshaw drivers.



According to a media report, Ola has launched the subscription-based model in Delhi-NCR, Mumbai, Bangalore and Hyderabad, while Uber has rolled out its subscription plans in 6 cities, including Chennai, Kochi and Visakhapatnam.

So, how do these subscription-based plans work? It is said that the platforms charge a fixed daily or weekly fee for an unlimited number of rides, instead of charging a booking fee or commission on every transaction. Under the new model, the ride-hailing platforms do not allow online payments and they don’t set the prices for the rides.

Reports also suggest that this could help Ola and Uber to bypass the 5% GST applicable on auto-rickshaw rides facilitated by them. The GST is applicable under Section 9 (5) of the Central GST Act, which mandates e-commerce companies such as Uber and Ola to collect and pay tax on behalf of the service providers listed on their apps.

Source: ET

Link to Team-BHP News

[ohaak]

If they don't fix the rates for the rides, I don't see a point in using the platform. I can always hail a rickshaw and haggle away.

[BayB]

So OLA and UBER still make money. Auto wallahs, also have their way - they get the customer, charge whatever they want.

The question is - What is in it, for the riders?

[DetectiveMiles]

Namma Yatri is has not been good for me but I have read good and bad reviews about it. I have been setting payment mode as Cash and pay using UPI on Uber Auto, it works for me. Namma Yatri has been just bargaining via App instead of roadside as per my limited experience. And when Uber/Ola autos are not accepting rides in peak hours, Namma Yatri also doesn't work. Noticed auto drivers just approach and quote 100+ per km if the ride is short distance of 4-5 km and they outright say no to long distance rides.
From what I heard auto drivers saying, if it is direct cash/UPI, they feel they are not paying commission, thinking Ola/Uber won't deduct same from different booking.

As a rider, we are always stuck with the hard end of the bargain. When the service is much needed, we have no option but to take at higher cost.

[thanixravindran]

Originally Posted by BayB

So OLA and UBER still make money. Auto wallahs, also have their way - they get the customer, charge whatever they want.

The question is - What is in it, for the riders?

Nothing. Expect more cancellations and bargaining in calls after acceptance of ride. Currently the only reluctance by Chennai Auto driver is they don't want to pay upfront for a week and if they don't ply their auto for any reason, it is a loss they can't recover. But they may accept daily subscription.

I believe the day is not far when ride hailing apps will add this subscription to end user also. They are showing platform access fee already in the invoice for sometime in each ride.

[d.w.w.]

Originally Posted by TusharK

they don’t set the prices for the rides.

The benefit that people who are bad at bargaining (like me) got from Ola/Uber was that they don't have to get in to an argument with the driver for deciding the price. If that is taken away, I prefer staying away from these platforms while looking for a ride .

[alpha1]

Originally Posted by ohaak

If they don't fix the rates for the rides, I don't see a point in using the platform. I can always hail a rickshaw and haggle away.

The utility is that you don't have to walk to the nearest (which could be quite far away) auto stand or the traffic junction.

The app allows the common platform to connect the driver with us to determine the mutually agreeable destination and rates. Otherwise for the driver, he waits forever on the road, and we (hailing the ride) will walk forever to hunt for the willing auto driver.

All this can be made redundant if police enforces the rule that auto cannot refuse rides - but we know how effective this rule is.

[Amity]

I hailed an Ola Auto from Mumbai Airport (Hyatt Signal) yesterday. At the time of booking, it was showing mode of payment as cash (my usual automatic selection for Ola rides is Ola postpaid) and it was not allowing me to change the payment mode. Further, it showed a fare range instead of exact fare i.e. INR 188-196 and asked me to agree on final price with the driver (image attached). This whole change was a surprise for me. However, I went along with it. Reading this thread puts the whole thing in context.

Upon completion of ride, the final fare shown was the same range mentioned above. When asked how much do I have to pay, auto driver told me INR 200. I told him about the mentioned range and paid him INR 192 through UPI (Driver agreed without any argument).

But I can see that it’ll create issues with people as now auto drivers will haggle and ask for the higher end of range and riders will expect to pay towards the lower range. In my case, the range was still less than INR 10 and driver obliged in one go with the price I mentioned but may get tricky if this range is more than INR 20.

[antonylejos]

The impact may vary from city to city.

I am sharing how it will impact in 3 cities which I know very well, based on my experience.

In Bangalore, this could signal the end of OLA/Uber Auto, as OLA/Uber taxi fares will likely be more affordable than the negotiated rates of auto drivers. My most recent experience with an auto driver in Bangalore, outside of apps, involved paying Rs. 150/- for a 2.1 km trip. So tech savy Bangalore riders may switch ot Uber/Ola taxi than an Auto.

In Mumbai, autos have always ran on meters, so for the people of Mumbai, this will simply add the convenience of booking an auto from their home. Perhaps auto drivers will start the meter from the point they receive the booking. It’s a win-win situation for both the passenger and the auto driver. Anyway Mumbai being a congested city, with only apartments, most people anyway get to hail an auto from their apartment gate without help of an app.

In Kochi, the negotiated fares with auto drivers are not as bad as in Bangalore, and will still be much lower than OLA/Uber taxiss. So, the added convenience of booking from home will remain, and people are likely to use Uber/Ola auto even with this change.

[ninjatalli]

Here’s the updated terms and conditions for Ola

Company shall, upon receiving the booking request from you, we will show the available number of Drivers and range of fare value which are market acceptable and most prevalent in the current city and area in particular. However, the Company shall not be responsible for arranging any Driver services for you.

In the event , the booking is confirmed, you shall check the booking details and shall determine the final fare with the Driver. The Fare range shown by the Company is merely a suggestion and thereby, it is advisable to you to check and determine the final fare with the driver.

The fare is subject to the negotiation between you and the Driver and Ola does not play any role in fare determination and negotiation. The Company merely provides the suggestive range for helping you to assess the current market prevalent rates on the basis of city, area and time of the day.

Does anyone see an option to choose between cabs/autos offering the fixed price vs those running under the subscription model? If not there, then this is going to reduce my dependency on these cabs significantly.

[condor]

If this is an offer to the drivers, then it means it's not mandatory.
If the above is correct, then how does one know which pricing model will be applicable ?

*

For the benefit that Ola/ Uber provides in not having to argue fares with the driver, the fares are already about 25% above a regular flag-down hire. Namma Yatri fares are also in the same range. The one other advantage was being able to track the ride which was very useful when one is booking a ride for senior citizens.