Ride-hailing company Ola has reportedly introduced a Software-as-a-Service (SaaS)-based zero-commission model for its cab drivers, allowing them to keep 100% of their earnings in exchange for a fixed daily or monthly subscription fee. This move follows similar models previously adopted by rivals like Rapido and Namma Yatri. According to a Mint report citing sources familiar with the matter, this shift is aimed at helping Ola retain its driver base amid intensifying competition in the ride-hailing sector.
This model was first implemented for Ola’s auto drivers in 2024, and its extension to cab drivers comes as Ola faces increasing criticism over its previous commission structure, which charged drivers 15–20% per ride. The backlash has led to strikes and boycotts from driver unions in cities like Chennai and Delhi NCR, protesting high commissions and loss of traditional customers.
The subscription-based model, which is seen as more profitable for drivers, also helps Ola compete with emerging players offering zero-commission alternatives. Additionally, the shift may help Ola reduce its tax burden. While Ola currently pays 5% GST on commission earnings, platforms like Namma Yatri, which operate purely as intermediaries, have received GST exemptions. However, Rapido, despite adopting a similar model, was deemed by the AAR Karnataka as liable for GST due to its role as an ecommerce enabler.
Ola is also exploring diversification beyond ride-hailing. Last year, it began grocery deliveries through ONDC and even piloted a 10-minute delivery service in parts of Bengaluru. Meanwhile, Rapido is now looking to expand into food delivery, positioning itself to compete with major players like Zomato and Swiggy.
