Ride-hailing companies in India are moving to a “zero commission” model. Instead of taking a percentage of each ride, they now charge drivers a fixed subscription fee. Ola and Uber have already switched to this model. After first testing it for autorickshaws last year, Ola is now offering it to cabs in partnership with Uber.
Under this system, drivers pay a fixed fee on a daily, monthly or annual basis and keep all their earnings. For example, Rapido charges ₹9–₹29 per day, Namma Yatri charges ₹90, and Ola charges ₹67 per day for its 30-day plan. In the previous model, cab platforms used to take a 20–40% commission from drivers.
The zero-commission concept is also being used outside of ride-hailing, such as in mutual funds, discount brokerages, and e-commerce. This model can help drivers earn about 30% more revenue than the traditional commission model.
