Bhavish Aggarwal-led Ola rolls out nationwide zero-commission model

Business Standard

17-06-2025

Phased rollout across autos, bikes and cabs lets over one million drivers retain 100 per cent of fares as Ola shifts away from traditional commission-based model
Peerzada Abrar Bengaluru
Ride-hailing firm Ola said it has implemented a nationwide zero-commission model, allowing more than one million driver-partners to retain 100 per cent of their fare earnings.
The programme, now active across the country, spans all vehicle categories—autos, bikes and cabs—and imposes no caps on ride volume or income. Under the new structure, drivers can select a plan and keep the entire fare, with no deductions, marking a significant departure from the traditional commission-based model that dominates the industry.
The shift to zero per cent commission was executed in phases, beginning with Ola Autos, followed by Ola Bikes and now, Ola Cabs. The company said the scale of execution across vehicle types and across the country cements Ola's commitment towards redefining platform economics for drivers.
'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,' said an Ola Consumer spokesperson. '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.'
Ola said it is one of the few profitable consumer internet companies in the country. The company said it is committed to passenger safety and follows stringent safety protocols, including driver background checks, vehicle quality standards and in-app emergency features, among others.
Experts said the nationwide implementation across multiple vehicle categories marks a strategic push by the company to overhaul platform economics in favour of driver-partners. The move highlights Ola's broader effort to reposition its model amid growing competition and calls for greater driver earnings in the gig economy.
Open networks in the mobility sector can redefine India's urban mobility landscape and boost economic growth by generating between Rs 51,000 crore and Rs 67,000 crore annually, boosting driver incomes by approximately 30 per cent and fostering inclusive growth, according to a white paper unveiled by the Open Network for Digital Commerce (ONDC).
The white paper Driving Digital Inclusion—Open Network and New Business Models in Mobility Apps reveals how open network models such as zero commission offer a compelling alternative, empowering drivers to retain 100 per cent of their earnings.
It said this shift could increase a driver's income by Rs 1.36 lakh annually—approximately 30 per cent higher than current levels. This could add up to Rs 20,475 crore annually for 1.5 million drivers across India.
The ripple effects of this additional income are substantial. Drivers' households are expected to spend more on better housing, education, healthcare and nutritious food. This increased spending could stimulate local businesses and generate between Rs 51,000 crore and Rs 67,000 crore annually.
It also highlights the challenges with traditional aggregator-driven models, where platform commissions impact driver incomes and reduce their capacity to contribute to local economies.
India's online ride-hailing sector has emerged as a crucial pillar of urban mobility, generating significant economic value and employment opportunities. The sector serves a substantial and growing user base, projected to reach 38.06 crore by 2029.
By last count in 2024, Uber alone engages well over 10 lakh drivers, and in 2018, Ola had declared working with 25 lakh drivers across two-, three- and four-wheeler vehicles, according to the paper. This extensive driver network caters to a substantial user base. The sector is witnessing a 9.09 per cent annual growth. Its revenue in 2029 is expected to grow to $11.64 billion from $7.53 billion in 2024.
Despite its transformative impact, the current ride-hailing ecosystem presents challenges for drivers and customers, according to the paper. Drivers face low earnings, high platform commissions and the absence of social security, while customers encounter issues such as limitations around public transport integration, underserved Tier-2, -3 and -4 cities, cancellations and inconsistent service quality.
The white paper by ONDC highlights that apps like Namma Yatri on an open network have the potential to generate Rs 3 lakh crore in economic impact over five years.