The introduction of Uber’s Software as a Service (SaaS) model has sparked conversations among both riders and auto-rickshaw drivers regarding its potential advantages and challenges. To fully understand its real-world impact, it is essential to examine the financial landscape of auto-rickshaw drivers.

Financial Overview Across Major Cities

In Delhi, auto-rickshaw drivers typically earn between ₹700 to ₹1,000 per day. This translates to an average monthly income of ₹7,000-₹9,000. Drivers usually complete 7 to 8 rides daily, covering approximately 100-120 kilometers. While the average income per ride has increased from ₹95 to ₹118, operational costs, including fuel and maintenance, have also risen. Drivers who own their auto-rickshaws save around ₹600 daily, while those who rent save approximately ₹300.

In Gurgaon, drivers navigate the challenges of a rapidly developing city with an evolving transportation landscape. Although specific data on earnings is limited, research indicates that drivers earn around ₹1,000 per day after expenses and maintenance.

Bangalore’s auto-rickshaw drivers earn approximately ₹300-₹400 per day, with some earning up to ₹800 in profit by completing 20 trips.

In Hyderabad, drivers earn around ₹600-₹700 per day after expenses such as fuel, maintenance, and rentals. Meanwhile, in Mumbai, daily earnings range between ₹1,500-₹2,500.

With approximately 12 million registered auto-rickshaw drivers in India—half of whom rent their vehicles—financing options often involve high down payments and interest rates. This raises a crucial question: If drivers struggle with rental and loan payments, will they be able to afford Uber’s subscription model?

Weighing the Benefits of a Subscription-Based Model

Auto-rickshaw drivers primarily serve local communities and can often find passengers without an app. However, app-based services introduce structured pricing and reduce competition for the same customers. While this model enhances fairness and efficiency, rental-based drivers may face financial constraints in affording subscriptions.

A potential solution is for vehicle owners to slightly adjust rental rates to accommodate Uber’s subscription costs, ensuring that drivers can still operate profitably. Additionally, comparing Uber’s model with Rapido’s commission-based structure provides valuable insights.

For example, if a Delhi-based driver earns ₹1,000 daily, Rapido charges a maximum daily subscription fee of ₹29, leaving the driver with ₹971. For Uber’s model to be competitive, its subscription fee would need to remain at or below this level.

The Road Ahead

Despite challenges, Uber’s SaaS model presents key advantages. It offers pricing flexibility and eliminates commission-based deductions, allowing drivers to retain more of their earnings. The ultimate success of this model will depend on how effectively it accommodates the diverse financial situations of auto-rickshaw drivers across India. By considering affordability and ensuring fair pricing, Uber has the potential to create a win-win situation for both drivers and customers, fostering a more efficient and sustainable urban mobility ecosystem.