There is a “perception-reality gap” among drivers on commissions charged by Uber, Prabhjeet Singh, president, India & South Asia, told FE on the sidelines of the launch of the Uber Economic Impact report in Bengaluru on Wednesday.
Singh said, “In some cases, our average commission stands at 2-3%. If we’re doing 20 million trips a week, only a small percentage of those trips may have higher commissions due to demand surge.” While acknowledging that many drivers believe Uber takes a much larger share, Singh reiterated that the actual commissions are often far lower than assumed. “We’ve introduced a lot of transparency when it comes to pricing. Drivers can see the average service fee on the app. For anyone who thinks we’re taking 40%, we ask them to look at the breakdown. It’s much lower — typically under 12%, even during peak surge times,” he said.
He added that Uber sometimes forgoes commissions to ensure trips are completed, even if it leads to a loss. “Completing the trip is more important than leaving it undone. In cases where we’re not recovering our technology or server costs, we still make sure the trip goes through because that benefits both the rider and driver,” he added.
When asked about alternative models, Singh dismissed the viability of zero-commission structures. “A subscription fee alone cannot sustain the business—it’s just commission under a different name,” he added. “There are operational costs, including cloud infrastructure, safety measures and technology that need to be covered. A driver-paid subscription fee may not fully offset these expenses.”
Singh acknowledged that bridging the perception-reality gap with drivers requires better communication and engagement. “We definitely need to do more to address this gap,” he said. “That’s why we’re constantly engaging with unions and the state governments. Some unions have even submitted requests to the government, urging them not to introduce policies that could harm the long-term viability of the ride-hailing sector. We are also looking at implementing models where we can incentivise unions to participate in this dialogue.”
Singh noted that some union-led discussions have been productive, with drivers raising valid concerns that Uber is taking steps to address. “Many unions have been constructive in their dialogue with us. They understand that over-regulation or knee-jerk policies could hurt drivers and the platform in the long run.”
