Ride-hailing giant Ola Cabs is introducing a groundbreaking feature allowing customers to make UPI payments directly to drivers through the app. Scheduled to launch in Bengaluru by week’s end and nationwide by December’s close, this move eliminates the need for third-party payment apps, streamlining the user experience. Bhavish Aggarwal, Ola’s CEO, shared on X (formerly Twitter), “Revamping digital payments experience in Ola cab rides. You’ll be able to use UPI to pay the driver directly through the Ola app just like UPI is used daily.”
Users can create a UPI ID within the Ola app, linking their bank accounts seamlessly for direct payments, eliminating the need for third-party apps. Aggarwal emphasized the simplicity, stating, “All that’s required is for the user to key in their set UPI PIN after every ride for safe and secure transactions. With no hassle of entering card details, IFSC code, or recharging a wallet, this aims at making payments easier for customers and is safe,” as outlined in an Ola blog post.
Additionally, customers can opt to scan the QR code displayed on the driver’s app. This strategic move is anticipated to swiftly bring over 2 million Ola customers onto the UPI platform.
Notably, new entrant Namma Yatri offers a similar feature powered by Juspay, enabling users to pay drivers directly without navigating through a third-party app. Ola’s adoption of the UPI plugin coincides with its collaboration with the government’s digital commerce network, the Open Network for Digital Commerce (ONDC), signaling plans to provide last-mile delivery services for sellers on the platform. According to sources, an official announcement about Ola Cabs’ partnership with the state-backed network is imminent, encompassing last-mile logistics for various categories, including food delivery, grocery shopping, and pharmaceuticals.
