Uber shifts to cash-only mode for auto rides

Ride hailing platform Uber has shifted to a SaaS subscription-based model for its auto drivers, from a commission-based model.

A notification on Uber app informed users that starting February 18, all auto rides will be cash-only.

"Given the industry's shift towards a subscription-based model for drivers, we have decided to align our approach accordingly so as not to be at a competitive disadvantage," Uber spokesperson said.

Subscription-based model for auto drivers is being offered by ride-hailing apps such as Rapido and others.

"Uber is making a major shift with its new Auto model, moving towards a SaaS (Software-as-a-Service) approach. Here's what's different... Uber will connect you with nearby drivers, but the service itself is independent of Uber," the company said in a separate blogpost.

It further said no trip-level commission is charged to drivers, and made it clear that Uber only provides the platform.

"Uber does not levy any cancellation charges, Uber suggests a fare, but the final amount is decided by the driver and you," it added.