Ola launches zero commission model nationwide; drivers will now retain 100% of earnings

Ride-hailing platform Ola recently extended the zero-commission model to cab drivers after initially piloting the framework with autos and bikes. 

What is Ola's new policy?

Ola’s new policy allows over a million driver-partners to retain 100% of their fare earnings, without any ride or income limits. According to Ola’s social media page, drivers can use the subscription-based model through a 30-day pass for Rs 2,010 or daily at Rs 67.

“The launch of the 0% commission model pan-India marks a fundamental shift in the ride-hailing business,” an Ola Consumer spokesperson said. “Removing commissions empowers driver partners with much more ownership and opportunity. They are the backbone of the mobility ecosystem, and giving them complete control of their earnings will help in creating a more resilient and sustainable ride-hailing network across the country.”

Namma Yatri pioneered a subscription-based model in 2023, charging a flat fee of ₹25 for autos and ₹45 for cabs in cities like Bengaluru and Chennai, allowing drivers to retain 100 per cent of the fare.

While Ola’s rival Rapido is already following a zero-commission model, using its platform as a Software-as-a-Service (SaaS) model.

It extended its SaaS model to autorickshaws in February last year. In December 2023, Rapido introduced Rapido Cabs, a zero-commission cab service.

In February, Silicon Valley-based giant Uber scrapped its commission-based model for two and three-wheelers, bringing a subscription-based model instead, allowing drivers to use the platform for as low as ₹9 for using its platform.

At the time, an Uber spokesperson said that the company recognised the market trends and adopted a similar strategy to stay competitive in the low-cost mobility rides.

This shift comes after persistent driver complaints about the unfair commissions charged by such platforms. The Telangana Gig & Platform Workers Union (TGPWU) even launched a campaign to boycott airport trips by such platforms. Ola and Uber faced a boycott by auto and cab drivers across Chennai, claiming high commission charges of 25-40% by such platforms, as reported by the Times of India.

Given the public criticism faced by Ola and Uber, the government also announced plans to introduce a ride-hailing service, ‘Sahkar Taxi’, as an alternative in March 2025.

Also read: Bike taxi ban in Karnataka—Ola, Uber, Rapido to stop operations from June 16, HC refuses to stay govt ban (startuppedia.in)