Ola starts zero-commission model for drivers to gain market share

Bengaluru, 18 June

The ride-hailing company, Ola has rolled out a zero-commission model across India, allowing driver-partners to retain the entire fare from customers with no ride or income limits.

As the ride-hailing space faces intense competition, the company’s initiative is a step to garner higher market share. This initiative is set to benefit over 1 million drivers, spanning all vehicle categories such as auto-rickshaws, bikes, and taxis.

Notably, Ola usually charges 15-20 per cent on commission on each ride to their driver partners. High commission on riding fees has been a bone of contention among drivers, who have frequently pleaded for lowering charges. Given the high oil and natural gas rates, this step is expected to provide some respite to drivers with boost their earnings.

According to reports, Ola introduced this scheme in phases, initially with Ola Auto, followed by Ola Bike, and finally Ola Cabs. According to the company, this move is aimed at promoting the economic independence and future security of drivers without imposing additional costs on customers.

Competition is intensifying in the rising ride hailing space in India with competitors like Rapido and Namma Yatri eating into established players’ market share.

Recently, Rapido has stopped its bike riding services in Karnataka. Following the Karnataka High Court’s refusal to stay an earlier order directing bike taxi aggregators to halt operations, the ban on bike taxi services came into effect from Monday. The company has replaced the option with a new service labelled ‘Bike Parcel’.