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Subscription Model For Ola Drivers To Avail Zero Commission

Inc42 · 1m ago

Subscription Model For Ola Drivers To Avail Zero Commission

Ola has introduced a zero commission model for drivers, requiring them to pay a monthly fee of INR 2,010, or INR 67 per day, through a 30-day subscription pass. This model is available nationwide and applies to all types of bookings including cabs, autos, and bikes. This move places Ola alongside companies like Rapido and Namma Yatri, which have also implemented similar zero commission schemes for their drivers.

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Related News

Ola Extends Zero Commission Model to Cab Drivers After Autos

OutlookIndia

OutlookIndia · 1m ago

Ola Extends Zero Commission Model to Cab Drivers After Autos

India's leading ride-hailing platforms, Ola and Uber, are transitioning from commission-based models to subscription-based structures for drivers. Initially tested with auto-rickshaws, this model is now implemented for cab drivers, who pay a flat subscription fee instead of a cut from every ride. This approach, allowing drivers to retain 100% of earnings, aligns with newer players like Rapido and Namma Yatri, reinforcing the growing trend towards zero-commission platforms in various sectors.

Zero commission model in mobility can increase driver incomes by 30%: ONDC

YourStory

YourStory · 7m ago

Zero commission model in mobility can increase driver incomes by 30%: ONDC

The Government-backed Open Network for Digital Commerce (ONDC) has released a whitepaper discussing the benefits of its zero commission model for the mobility sector. The report highlights the challenges faced by ride-hailing drivers who pay a percentage of their earnings as commissions to platforms. In contrast, the ONDC's zero commission model, which charges a flat platform fee or a monthly subscription fee starting from as low as Rs 10 per day, allows drivers to retain 100% of their earnings. This could lead to a 30% increase in driver incomes, amounting to Rs 1.36 lakh annually, benefiting approximately 15 lakh drivers across India. The ONDC aims to promote digital inclusion and growth through its open network approach, which prioritizes interoperability and unbundling of services. This model has the potential to generate significant economic impact and tax revenue for the government. The whitepaper also argues for a differentiated approach to applying GST to support the growth of open network zero-commission ride-hailing services.

Uber adopts smaller rivals' model for India autorickshaw rides to weather competition

Economic Times

Economic Times · 5m ago

Uber adopts smaller rivals' model for India autorickshaw rides to weather competition

Uber has adopted a zero-commission model for its autorickshaw drivers in India, opting for a subscription fee instead. This strategy aligns with local competitors like Rapido and Namma Yatri. Uber will connect users with drivers, suggesting fares while the final amount is decided by both parties. This move aims to tackle high commission concerns and competitive pressures, as well as navigate complex regional regulations and tax liabilities for ride-hailing platforms in India.

Ola And Uber Unveil Subscription-Based Models For Auto Drivers

Inc42 · 1y ago

Ola And Uber Unveil Subscription-Based Models For Auto Drivers

Ride-hailing giants Ola and Uber are introducing subscription-based plans for auto-rickshaw drivers on their platforms instead of charging a commission or booking fee for every transaction. Ola has introduced the subscription model in Delhi-NCR, Mumbai, Bengaluru, and Hyderabad, while Uber has initiated a similar program in Chennai, Kochi, and Visakhapatnam. This new model, where platforms charge a fixed daily or weekly fee to drivers for unlimited rides, could potentially help the companies avoid the 5% GST imposed on auto-rickshaw rides. However, there are concerns about potential disputes with tax authorities due to a lack of clarity regarding tax exemptions.

Namma Yatri starts cab service in Delhi NCR

Economic Times

Economic Times · 11m ago

Namma Yatri starts cab service in Delhi NCR

Indian ride-hailing platform Namma Yatri has launched its zero-commission cab services, branded as 'Yatri', in Delhi NCR. The platform aims to compete with Uber and Ola by not charging subscription fees or commissions until March 2026 for its electric auto rickshaws and cabs. Yatri offers various types of cab services at competitive prices and operates on a lifetime zero-commission policy. The company, along with its family of mobility apps, operates on the Open Network for Digital Commerce (ONDC) platform and follows a zero-commission model.

Uber releases SaaS model, drops auto drivers' commission: Report

Inshorts · 5m ago

Uber releases SaaS model, drops auto drivers' commission: Report

Ride hailing service provider Uber has rolled out software-as-a-service (SaaS)-based zero commission model for auto drivers across India according to a report by Inc42. The report added that this comes over a year after Rapido expanded its subscription fee-based model to autos. Uber reportedly said that it will solely act as a technology platform connecting riders with independent driver partners.

Swiggy-Backed Rapido Expands Zero Commission Model For Auto Drivers

Inc42 · 1y ago

Swiggy-Backed Rapido Expands Zero Commission Model For Auto Drivers

Rapido, the ride-hailing startup, has extended its zero commission model to auto drivers in an effort to reduce high commission rates and empower them to control their earnings. The company will charge auto drivers a daily login fee ranging from INR 9 to INR 29 and in return, drivers can do unlimited rides without paying any commission. Rapido aims to onboard offline auto drivers to its platform and transform the traditional commission system for their benefit. The SaaS model-based discovery platform will now be accessible to auto drivers, offering them a more efficient and reliable digital experience.

Why the ride-hailing industry moved away from commission-based models

Economic Times

Economic Times · 1m ago

Why the ride-hailing industry moved away from commission-based models

The ride-hailing industry is shifting away from commission-based models due to driver dissatisfaction and low earnings. Ola recently introduced a zero percent commission model, allowing drivers to keep all their fares. Other companies, like Rapido and Uber, have also adopted alternative strategies, influenced by similar concerns. The rise of platforms like Namma Yatri, which address high commission issues, has spurred this trend. Consequently, ride-hailing companies are exploring new revenue streams to remain competitive.

Ola rolls out zero per cent commission model nationwide, allows drivers to retain full fare earnings

Economic Times

Economic Times · 1m ago

Ola rolls out zero per cent commission model nationwide, allows drivers to retain full fare earnings

Ola has implemented a zero per cent commission model nationwide, allowing over a million driver partners to retain their full fare earnings without ride or income limits. This initiative covers autos, bikes, and cabs, offering drivers unlimited earning potential by choosing their plans with no deductions. This shift empowers drivers by granting them greater ownership and opportunity and is complemented by stringent safety protocols and driver background checks within the company's broader mobility ecosystem strategy.

Rapido extends SaaS-based model to auto drivers

Thehindubusinessline

Thehindubusinessline · 1y ago

Rapido extends SaaS-based model to auto drivers

Rapido, a ride-hailing platform, has extended its Software-as-a-Service (SaaS)-based zero-commission model to auto drivers. Under this model, auto drivers can receive zero-commission payments from customers, paying only a daily login fee to the platform. Rapido aims to establish a sustainable business model by increasing fleet size and the number of rides, despite initial profitability challenges. The company has raised $310.4 million in funding through 10 rounds, with the latest funding led by Swiggy.

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