Commission Models Not Enough To Determine Market Share, Says Uber

Uber India does not believe commission models are enough to determine market share of cab aggregators in India even as the firm faces rising competition from zero-commission Rapido.

"Commission models are not going to be the single biggest determinant of market share for cab aggregators," Prabhjeet Singh, President, Uber India and South Asia, told NDTV Profit on Tuesday.

"Independent of how a platform charges commissions, it is important for drivers to have fair, transparent and sustainable models. We are continuously innovating commission models and have different versions in different markets," he added on the sidelines of a company event.

Singh said that Uber in India wants to be 'competition aware', but not 'competition obsessed'. He said that competition, including from a commission model perspective, forces incumbent market leaders like Uber to constantly innovate.

"We have been constantly advocating for a level playing field for legal and taxation structure in the market," Singh said. "It is important that whichever commission model is being followed, it is compliant with the law of the land."

Uber, on Tuesday, launched a suite of new features like 'Price Lock', 'Wait & Save', 'Simple Mode For Seniors' and Airport Priority Access. For the US-based ride hailer, India remains one of its fastest-growing markets, with over 14 lakh drivers across 125 cities.

When asked about media reports from a few months ago, which talked about Uber being in talks to acquire BluSmart's fleet of electric vehicles, Singh said, "At any point of time, we work with multiple players in the ecosystem for fleets. Uber Green service works in association with multiple fleet partners."

He refused to give a direct comment on discussions with BluSmart.

"I can't imagine a world where two-wheelers won't be a part of India's ride-hailing ecosystem," the Uber executive said when asked about the future of bike taxis in the country.

"Two-wheeler taxis are solving real consumer needs and providing livelihoods. But certain states will take time to come up with their own bike taxi framework," he added.