Ola has introduced a zero commission model for its drivers across India, the company announced on June 18, 2025.

This decision follows similar initiatives by other ride-hailing companies such as Namma Yatri, Rapido, and Uber.

Drivers can choose 30-day passes costing 67 rupees (US$0.78) per day, totaling 2,010 rupees (US$24.12) per month.

This allows for unlimited rides without paying a commission.

This model applies to autos, bikes, and cabs, and was implemented in phases, starting with Ola Autos, then Ola Bikes, and now Ola Cabs.

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🔗 Source: YourStory

🧠 Food for thought

1️⃣ Economic transformation: Zero-commission models significantly boost driver earnings

The shift to zero-commission models represents a major economic restructuring of the ride-hailing industry, with substantial financial implications for drivers.

Under traditional models, drivers typically surrendered 15-20% of each fare to Ola and up to 25-30% to aggregator platforms industry-wide, significantly reducing their take-home pay 1.

According to ONDC research, the zero-commission model could increase driver incomes by approximately 30% compared to traditional commission-based platforms, potentially generating an additional Rs 1.36 lakh annually per driver 1.

At scale, this transformation could create an estimated economic impact of Rs 20,475 crore for India’s 1.5 million drivers, with broader economic benefits of Rs 51,000 to Rs 67,000 crore through increased local consumption 1.

The subscription fees, Rs 67 per day for Ola compared to Rs 35 for Namma Yatri and Rs 10 for O Rickshaw, highlight how platforms are experimenting with different price points to balance driver accessibility with platform sustainability 1.

2️⃣ Competitive cascade: How market forces drove industry-wide business model reinvention

Ola’s move follows a clear competitive pattern that has transformed the industry, with each company responding to competitive pressure from first-movers.

The cascade began with Namma Yatri’s subscription model in 2023, followed by Rapido in 2024, and Uber in early 2025, and now Ola completing the industry transformation 23.

Early adopters demonstrated that the zero-commission approach improved driver retention and market penetration, compelling competitors to follow suit despite the revenue model disruption 2.

The traditional commission-based model has been increasingly recognized as unsustainable due to thin profit margins for drivers, creating friction between platforms and their workforces 2.

This transition reflects a fundamental shift in industry priorities from purely profit-driven models toward more sustainable practices that better balance platform economics with driver welfare 2.

The timing is particularly significant as the Indian ride-hailing market is projected to grow from $7.53 billion in 2024 to $11.64 billion by 2029, suggesting companies are positioning themselves for the next phase of market expansion 45.

Recent Ola developments

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