Ola Drivers Can Now Keep 100% Fare Under Zero Commission Model

Bhavish Aggarwal-led Ola has implemented a zero commission model across the country. Ola drivers can now fully retain their fare earnings with no ride or income limits. They can choose their plan and keep the entire fare, with no deductions or limits, the company said in an official statement as quoted by PTI.

This plan covers autos, bikes, and cabs nationwide. “The launch of 0% commission model pan India marks a fundamental shift in the ride-hailing businesses. Removing commissions empowers driver partners with much more ownership and opportunity,” an Ola Consumer spokesperson said.

Previously, the company started executing this plan in phases, beginning with Ola Autos, followed by Ola Bikes, and now Ola Cabs. “The company is committed to passenger safety and follows stringent safety protocols, including driver background checks, vehicle quality standards, and in-app emergency features, among others,” it added.

In this model, no commission fee is charged. Instead, a one-time fee or subscription fee applies, either on a daily basis, monthly, or annually. For example, Rapido’s subscription fee ranges from ₹9 to ₹29 per day. Namma Yatri charges ₹90 per day, irrespective of the number of rides. On the other hand, cab aggregators generally charge a commission fee of around 20-40% from drivers.

The zero-commission model, however, is not confined only to the ride-hailing space. Several mutual fund platforms, discount brokerages, and e-commerce platforms are also using zero commission models. 

ONDC has also adopted the zero-commission approach in the mobility sector to boost driver earnings by approximately 30%—thanks to drivers retaining their full fares after paying just a flat daily or monthly fee—when compared to traditional commission-based platforms.

Meesho also claimed to be the first e-commerce platform to introduce a zero-commission model. In 2021, the platform introduced this model to encourage sellers to invest their capital more efficiently rather than spending a significant portion on commissions. 

In addition, at-home salon platform YesMadam has introduced a 0% commission model for its top-performing service professionals in April this year. The company is not taking a commission from earnings of select gig workers who meet internal performance criteria.

The platform had earlier reduced commissions from 20% to 15%, and then to 8%, over the past few years.