Ride-hailing major Uber India's move to introduce a subscription model for drivers on its platform is still in the early stages, with global CEO Dara Khosrowshahi describing it as an ongoing experiment.
This is a key change for the company, which has traditionally charged drivers a commission, or a cut of their earnings, on every completed ride. The rethink has been pushed by changes in the Indian ride-hailing sector. Namma Yatri and Rapido have gained ground with zero-commission structures, under which drivers pay a daily or monthly subscription fee instead of giving up a share of each ride. The appeal for drivers is clear: after paying the platform fee, the ride fare is theirs.
That has put pressure on Uber and Ola, both of which built their businesses around commission-led economics, to consider other ways of charging drivers. Khosrowshahi discussed Uber India's approach with publications Mint and The Economic Times. "It [zero commissions] is a relatively new model for us; we are still in the experimentation and exploration phase," he said. Whether subscription-based monetisation can be as sustainable or profitable as commissions for ride-hailing apps is unclear.
Khosrowshahi acknowledged the uncertainty, but said that the demand was hard to ignore. "There is no question that there is enormous growth and appetite for it, which is why we are leaning into it," Khosrowshahi said. Uber's subscription fee for drivers is the highest among ride-hailing platforms operating in India. Khosrowshahi framed the company's pitch around service quality rather than short-term price moves.
"Promotions create a transactional relationship, but we are looking for something much more fundamental than that," he said. After India, Uber has also begun testing a subscription format for drivers in Brazil. The company is essentially watching whether the format can travel beyond one competitive market. On Rapido's rise, Khosrowshahi said: "Rapido has innovated, but I would argue (that) we have innovated faster and more than held our own." Uber's Indian business reported total sales of Rs 3,849.2 crore for FY25. Operating loss increased from Rs 84.8 crore in FY24 to Rs 1,052.3 crore in FY25, while net loss rose from Rs 89 crore to Rs 1,511 crore. Operating margin slipped to negative 27.3% from negative 2.2%. Rapido, meanwhile, narrowed its consolidated loss from Rs 370 crore in FY24 to Rs 258 crore in the year ended March 2025. Revenue from operations went up by 44% from Rs 648 crore to Rs 934.44 crore over the same stretch. "We could turn a profit here in India, but it would be selling our business and the potential of this country short.
So, at this point, we continue to lean into India," Khosrowshahi told the publications. India is Uber's third-largest market in terms of trips. Khosrowshahi said that India could become its largest market globally within the next decade. Two-wheelers are the fastest-growing category for the company in the country, though they remain unprofitable. Whether the company would consider reentering the food-delivery business in India after selling Uber Eats' local operations to Zomato in 2020, Khosrowshahi said: "There is an emotional part of me that would love to be in delivery. I had an all-hands with our employees, and a lot of our employees want us to be in delivery. But our focus on mobility in India, with all of the potential here, I think it served us well."
That has put pressure on Uber and Ola, both of which built their businesses around commission-led economics, to consider other ways of charging drivers. Khosrowshahi discussed Uber India's approach with publications Mint and The Economic Times. "It [zero commissions] is a relatively new model for us; we are still in the experimentation and exploration phase," he said. Whether subscription-based monetisation can be as sustainable or profitable as commissions for ride-hailing apps is unclear.
Khosrowshahi acknowledged the uncertainty, but said that the demand was hard to ignore. "There is no question that there is enormous growth and appetite for it, which is why we are leaning into it," Khosrowshahi said. Uber's subscription fee for drivers is the highest among ride-hailing platforms operating in India. Khosrowshahi framed the company's pitch around service quality rather than short-term price moves.
"Promotions create a transactional relationship, but we are looking for something much more fundamental than that," he said. After India, Uber has also begun testing a subscription format for drivers in Brazil. The company is essentially watching whether the format can travel beyond one competitive market. On Rapido's rise, Khosrowshahi said: "Rapido has innovated, but I would argue (that) we have innovated faster and more than held our own." Uber's Indian business reported total sales of Rs 3,849.2 crore for FY25. Operating loss increased from Rs 84.8 crore in FY24 to Rs 1,052.3 crore in FY25, while net loss rose from Rs 89 crore to Rs 1,511 crore. Operating margin slipped to negative 27.3% from negative 2.2%. Rapido, meanwhile, narrowed its consolidated loss from Rs 370 crore in FY24 to Rs 258 crore in the year ended March 2025. Revenue from operations went up by 44% from Rs 648 crore to Rs 934.44 crore over the same stretch. "We could turn a profit here in India, but it would be selling our business and the potential of this country short.
So, at this point, we continue to lean into India," Khosrowshahi told the publications. India is Uber's third-largest market in terms of trips. Khosrowshahi said that India could become its largest market globally within the next decade. Two-wheelers are the fastest-growing category for the company in the country, though they remain unprofitable. Whether the company would consider reentering the food-delivery business in India after selling Uber Eats' local operations to Zomato in 2020, Khosrowshahi said: "There is an emotional part of me that would love to be in delivery. I had an all-hands with our employees, and a lot of our employees want us to be in delivery. But our focus on mobility in India, with all of the potential here, I think it served us well."