
'We are open to all pricing models'
Your rival Rapido with its monthly platform model as against your 30% commission model from each ride is drawing a lot of attention forcing Ola to follow suit. What is your approach to this pricing model and what will be the impact on your revenue if switched to this one?
We are open to all pricing models that help our driver partners. In fact, we are testing a model that's based on a monthly fee model in some cities. All our services are based on the feedback from customers and our driver partners. That we've added 0.4 million new driver partners in 2024—from 1 million in the previous year to 1.4 million—is a testimony to the success of our business model. The way we operate is not necessarily about what others do. What we care for is our partners' profitability and choices. This is a competitive market and we are continuously innovating--whether it's our features, or the way we work with drivers. We offer different operating models to our partners. For example, our auto business runs on a subscription model, we also offer different models in some cities for cabs. There is no one uniform answer, that's the power of a very diverse business and you literally can actually customize according to market demands.
What we want to make sure is that irrespective of the way drivers engage with our platform, their earnings should be fair, stable, and transparent. Yes, multiple pricing models are in the market and we'll continue to iterate with drivers to ensure that they have choices. That 4 lakh new drivers came onto our platform last year alone means drivers are choosing to work with us despite having the choice of working with multiple platforms.
You've nearly a dozen products here. How many of them are profitable?
A very large percentage of our products are profitable. We don't report product-level profitability but at the end of the day the fact that we are growing rapidly means we are running a profitable business. We make enough money to reinvest in other new products. Our disciplined operations allow us to reinvest in categories which are future markets, so it's a portfolio of products that we manage. India business is growing strong, we continue to have a very sustainable business, and we're reinvesting profits from one part of the business to other parts. As a policy we don't publish specific revenue numbers.
How is Uber Green doing? What's preventing its faster adoption?
As the largest ride-hailing platform we must lead the industry by being a catalyst. For more EVs to come to our platform, I think OEMs have to come together, financing has to improve, more fleet partners with EVs have to come forward, and finally consumers have to opt for a green car which is costlier than a normal ride. We launched Uber Green about two years ago and it is now live in five cities, including Mumbai and over 20,000 EVs are on our network now.
At the end of the day it comes down to an economic choice for the driver. Pricing is the biggest speed bump I would say. Ride-hailing vehicles tend to run longer, they need a certain range, price points need to be lower, there must be the right charging infrastructure. So we are trying to solve for it by working with fleet partners, recognising that they will be able to make those investments in creating captive hubs, they are able to purchase those assets but that takes time. Also the resale market for EVs is still to fully play out.
Many of your services like Ubermoto, Uber Shuttle don't have licences in many cities?
Transport is a concurrent subject and every state has its own rules and regulations. What we're doing is as we innovate and pilot new services we simultaneously work with respective state administrations and educate them on the need to give customers mobility choices.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
an hour ago
- Time of India
Private banks' yields on advances dip on faster rate transmission
Private banks recorded a sharper fall, primarily because they have a higher share of loans priced on the external benchmark linked rate (EBLR) in their portfolio. EBLR adjusts more rapidly to policy changes than the marginal cost of funds-based lending rate (MCLR), the benchmark that most PSB loans are linked to. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads MUMBAI: Private sector banks have been quicker than their public sector counterparts in passing on the Reserve Bank of India's policy rate cuts to on loans for private banks dropped by 20-83 basis points (bps) in the quarter ended June 30 from three months prior. For public sector banks (PSBs), the decline was limited to 2-22 bps, based on the quarterly financial statements of central bank has cut policy repo rate by 100 basis points since February, with three-fourths of this reduction being done in the April-June banks recorded a sharper fall, primarily because they have a higher share of loans priced on the external benchmark linked rate (EBLR) in their portfolio. EBLR adjusts more rapidly to policy changes than the marginal cost of funds-based lending rate (MCLR), the benchmark that most PSB loans are linked 87% of private banks' floating rate loans are on EBLR as of the end of March 2025, compared with 46% for state-run banks, according to the RBI data. The share of loans linked to MCLR, where transmission works with lag effect and depends on the fall in incremental cost of deposits, is 12% for private banks and 49% for banks also saw a 0-20 bps decline in deposit costs during the quarter, whereas PSBs reported a relatively modest drop of 6-15 bps, the June-quarter numbers HDFC Bank , the cost of funds fell by about 10 bps, while loan yields declined by 20-22 bps. About 70% of the loan book of the country's largest private sector bank is linked to EBLR; the remaining is MCLR-based."These (EBLR-based) are floating-rate loans, so they reprice faster than the cost of funds," said HDFC Bank chief financial officer Srinivasan Vaidyanathan. "We manage our cost of funds by competitively pricing our savings and time deposits. The market hasn't fully priced in the 100-bps reduction in the policy rate between February and June. New deposit renewals will come in at lower rates." ICICI Bank reported a 33-bps sequential drop in loan yields to 9.53%. Axis Bank 's cost of funds came in at 5.39%, down 11 bps quarter-on-quarter and five bps year-on-year. The cost of deposits declined by 12 bps, while loan spreads narrowed by 13 bps."We've demonstrated disciplined increases in cost of funds over the last eight quarters," Axis Bank managing director and chief executive Amitabh Chaudhry said. "Our confidence in the franchise has allowed us to take proactive steps on savings and term deposit rates, resulting in an 11-bps sequential drop in cost of funds." Yes Bank saw its loan yields decline by 20 bps sequentially to 9.9%, with a corresponding fall in deposit costs to 5.9%. The bank's overall cost of funds fell by 10 bps to 6.3%. "The rate cut we implemented on savings account balances helped us align our deposit costs with the decline in loan yields," MD and CEO Prashant Kumar said, adding: "While we expect continued pressure on loan yields due to the repo rate cut, our focus remains on mitigating the impact."According to Saurabh Bhalerao, associate director at CareEdge Ratings, while private banks are seeing upfront pressure on margins mainly because of EBLR loans and competition, it will play out over the next two-three quarters for PSBs as MCLR rates fall with a lag. "Banks would try to make up for the pressure on NIMs (net interest margins) by managing the spreads as well as the cost of funds," he said.


Mint
an hour ago
- Mint
Bosch Layoffs: German autoparts maker to cut 1,100 jobs; assembly line and back-office roles at risk
Bosch Layoffs: German automotive components makerBosch announced its plans to cut 1,100 jobs at its Southern Germany-based plant on Tuesday, 22 July 2025, and disclosed that this move will affect one-tenth of the workers at the site, reported the news agency AFP. Advertisement This layoff will affect people who are involved in the site's assembly line as well as in back-office roles, reported the news agency, citing the German autoparts maker. 'The European market for steering systems is driven by price and hard fought with new suppliers,' said Bosch's electronics chief, Dirk Kress, amid the rising competition from the Chinese manufacturers in recent years. German car manufacturers have been struggling with this issue in recent times as the Asian nation contests for market share. 'The required cuts are not easy, but they are essential to secure the future of the site,' he said, according to the news agency's report. Losing the 'competitive' edge According to the agency report citing the autoparts maker, steering system sales were declining partly due to the sluggish uptake of electric vehicles. Advertisement Also Read | Stocks to buy under ₹100: Experts recommend two shares to buy tomorrow 'Manufacturing steering systems at the Reutlingen site is no longer competitive,' said Bosch, highlighting that the plant would now focus on manufacturing semiconductors. However, the company did not say whether the job cuts would involve compulsory redundancies or rely on voluntary measures such as early retirement. Other automotive suppliers like Schaeffler and Continental have made layoffs in the past year, while sports car maker Porsche last Friday warned workers of a 'serious situation' amid collapsing demand in China. In November 2024, Bosch also announced a 5,500-employee layoff across the company, according to the agency report. Bosch is a listed company in the Indian stock market, and the shares closed 1.37% lower at ₹37,750 after Tuesday's stock market session, compared to ₹38,320 at the previous market close. Advertisement Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of Mint. We advise investors to check with certified experts before making any investment decisions.


Mint
an hour ago
- Mint
Paytm swings to ₹123 cr Q1 profit, aided by AI-led cost efficiency; rejigs board
Advertisement One97 Communications, Paytm's parent company, on Tuesday reported a net profit of ₹123 crore in the April-June quarter of FY26 (Q1FY26), buoyed by artificial intelligence-led improvements in its cost structure. This sharp turnaround comes after a ₹539.8 crore loss in the three months through March, driven mainly by a one-time exceptional expense of ₹492 crore from accelerated ESOP cost and an additional ₹30 crore in other impairments. Excluding these exceptional items, the adjusted loss had stood at ₹23 crore in Q4FY25. The Noida-based company's first-quarter results, announced in an exchange filing after market hours, mark a significant recovery from an ₹840 crore net loss in the June quarter of the previous fiscal year. Advertisement Shares of the company settled 3.4% higher at ₹1,052.60 apiece on the BSE on Tuesday. The company also reported a positive Ebitda (earnings before interest, taxes, depreciation, and amortization) of ₹72 crore in the quarter. 'This is the first quarter where we've reported pure Ebitda, without adjusting for ESOP costs. Going forward, we'll remove the ESOP line entirely, and report pure employee expenses,' Vijay Shekhar Sharma, Paytm founder and chief executive officer, said during an earnings call on Tuesday. Consolidated revenue from operations in Q1FY26 rose 28% year-on-year to ₹1,918 crore, helped by an increase in merchant subscription and growth in financial services revenue, the company added. Meanwhile, sequentially, the revenue remained almost flat. Advertisement 'Merchant payments, across both small and large online and offline enterprises, will remain a key focus, and we expect a lot of innovation in that area,' said Madhur Deora, president and group chief financial officer. 'While wallet and BNPL (buy now, pay later) are not immediate quarterly priorities, we are actively working on them. We will continue to grow our merchant lending business, while personal loan growth will depend on a broader recovery in the market.' Rahul Jain, director at Dolat Capital, noted that while Paytm has mentioned about focus on these products, no timelines were provided for some new product initiatives. 'Growth for now will be led by merchant payments and merchant loans.' The company also announced a rejig of its board. Deora will step down from the board after the upcoming AGM but will continue in his role as the company's finance head. Advertisement 'Operating responsibilities are far more important for now, especially with our future growth line items, they're all geared towards consistent profitability from the same core businesses, international expansion,' said Sharma. He added that Deora's focus will, hence, shift towards active business decisions and growth opportunities. The board also appointed Urvashi Sahai, currently Paytm's General Counsel, as a Whole-time Director for a five-year term starting 22 July. Independent Director Bimal Julka also resigned, citing a desire to focus on interests in emerging technologies and ease of doing business. Forward looking plans Overall, analysts believe the company has shown recovery across financial metrics. Dolat Capital's Jain said, 'The results were better on all fronts, with strong profitability driven by steady growth, efficient cost management, and improved execution.' Advertisement Paytm earns most of its revenue from payments, financial, and marketing services. Payment services revenue (including other operating revenue) rose 23% YoY to ₹1,110 crore. Net payment revenue increased 38% YoY to ₹529 crore due to a rise in payment processing margin and device additions, the company said. For incremental revenue, while the company had expressed optimism in the last quarter about monetising its UPI services if the government re-introduced the Merchant Discount Rate (MDR), that potential revenue lever for the payments business now appears to be off the table. In June, finance minister Nirmala Sitharaman clarified that no MDR will be levied on transactions via the Unified Payments Interface (UPI), putting to rest earlier industry speculation that large merchants might soon be subject to the charge again. Advertisement This policy clarity may impact Paytm's plans to drive incremental revenue through UPI monetisation. 'We will see what happens as and when we get informed. We are not basing our business on some distant hope of the future. We are committed to continue to drive profitable business even without it,' said Sharma. In October last year, National Payments Corporation of India had allowed Paytm to onboard users on its UPI platform through partner banks, after the RBI barred Paytm Payments Bank from onboarding new customers due to compliance concerns. Revenue from financial services rose to ₹561 crore, up 3% quarter-on-quarter from ₹545 crore. This revenue also doubled year on year from ₹280 crore, led by merchant loan disbursements and improved collections from the default loss guarantee (DLG) portfolio. However, a shift to non-DLG disbursements by its largest lending partner is expected to slow sequential revenue growth even as disbursements rise. Advertisement Under DLG, Paytm gives a guarantee to its lending partners for a portion of the loans it facilitates in case of a default. The overall financial services customer count increased slightly in the quarter to 560,000. 'There is no significant recovery in terms of personal loans, the mix of merchant and personal loans remains the same as of last quarter,' said Deora.