Ola launches zero commission model for cab drivers

Ride-hailing platform ola has introduced a zero-commission model for its cab drivers, moving to a subscription-based system. 

This change comes as a response to rising competition from new players like rapido and Namma Yatri, which offer SaaS-style models where drivers keep all their earnings by paying a fixed daily or monthly fee.

Ride-hailing platform Ola has introduced a zero-commission model for its cab drivers, moving to a subscription-based system. 

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This change comes as a response to rising competition from new players like Rapido and Namma Yatri, which offer SaaS-style models where drivers keep all their earnings by paying a fixed daily or monthly fee.

“This is a significant win for drivers, who generally prefer a fixed subscription model that lets them retain 100% of their fares, rather than dealing with unpredictable commissions. It could also help reduce ride cancellations and driver churn. However, the impact on consumers remains to be seen,” said Nikhil Dhaka, vice president at Primus Partners.

According to Ola’s official Facebook post, the company is offering a 30-day pass at ₹67 per day, giving drivers full access to the platform with zero commission on rides. Ola has not yet responded to questions about the rollout or its long-term plans for this model.

Ola’s move to a subscription-based model may impact its GST obligations, especially the 5% tax on aggregator-facilitated rides. While platforms like Namma Yatri have received GST exemption from Karnataka’s AAR, others like Rapido are still liable as they are classified as e-commerce operators.

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