OLA rolls out a no-commission model for taxis to strengthen the competition | Mint

According to persons familiar with the case, Ola has introduced a zero commission model for its taxi drivers. It is a shift to a subscription -based structure in response to growing competition. The move follows newer players such as Rapido and Namma Yatri, who launched software-as-a-service style models that enable managers to retain 100% of their earnings in exchange for a fixed daily or monthly platform fee. Uber and Ola initially adopted this model for auto-riks-uber rolled it out earlier this year, while Ola did it in April 2024. Ola’s decision to expand the model to its taxi segment seems to be to retain drivers and remain competitive, especially as Rapido expands its services outside mobility, which ventures to food delivery. “This is a significant victory for drivers, which generally prefers a fixed subscription model to retain 100% of their rates, rather than dealing with unpredictable commissions. It can also help reduce the cancer and manager of the manager. However, the impact on consumers has yet to be seen,” Nikhil Dhaka, vice president at Primus Parts. According to a post on Ola’s official Facebook page, the company now offers a 30-day pass at £ 67 a day. This pass gives managers full access to the platform, without the commission being cut on rides. Ola did not immediately respond to Mint’s questions about the launch and future plans for the new model. Ola’s shift to a subscription-based model can affect the GST obligations, especially the 5% tax charged on the aggregator-facilitated rides. While Saas platforms such as Namma Yatri were released by the Karnataka Aar of GST, others like Rapido remain accountable after being classified as e-commerce operators. ‘It is yet to see how this shift will have an impact on tax on goods and service taxes (GST), especially as newer platforms with links to workers’ associations enjoy releases, while other incumbents remain liable to pay GST under current laws. As more can be more platforms for Saas models, this regulatory distribution can become more a sentence at the AAPTI institute. Last year, Uber challenged this contradiction before the Karnataka Authority for pre -decisions and the GST council, with the argument that it creates unfair competition and ambiguity in the interpretation of tax laws.