Image Source: Startup pedia
In its maiden move in India's ridehailing segment, Ola has rolled out a zerocommission model across the country, allowing over one million driverpartners to receive 100% of their fares. The move, which includes autos, bikes, and cabs as well, marks a clear departure from the traditional commission model.
Large Events
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Ola's new scheme gives the boot to perride commissions in favor of a flat subscription price. The daily or monthly option, such as a ₹67 per day pass, provides unlimited rides without any deductions.
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Rollout was staged: Ola Autos first, then Bikes, then Cabs, to finally shift to a panIndia zerocommission model.
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This project allows drivers to have full fare ownership, with more financial independence and autonomy in running their work.
Strategic Implications
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Ola becomes India's first ridehailing platform to entirely eliminate commissions, in response to increasing calls for equitable driver earnings.
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The shift comes after competitors like Rapido and Namma Yatri, both of which are SaaS or subscriptionbased, have shifted. Ola's move will likely enhance driver loyalty and sustainability of its mobility network, especially in the presence of growing competition and regulatory pressure.
Industry Context
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Historically, the aggregators have been levying 20–30% ride commissions. The new model can reverse the industry norm and compel other players to follow suit.
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Ola continues to prioritize passenger safety, with background checks, vehicle rules, and emergency features in the app intact.
Sources: Fortune India, Economic Times, Outlook Business, Rediff, MSN India.
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