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Ola reworks commissions to retain drivers

Jan 6, 2020 by Ebin K Gheevarghese
Ola reworks commissions to retain drivers

Cab aggregator Ola is adopting standardised driver commissions and moving away from an incentive-driven model to give its drivers better visibility into their earnings in a bid to revive the supply of drivers that has taken a hit over the past year.

The ride-hailing company is also making a strong push towards leasing business to cater to new high-margin categories like corporate, self-drive and scooter rentals, people familiar with the development told ET.

Over the last two months, Ola has been standardising commissions it charges drivers at 25% nationally to offer predictability of income to its driver partners, they said. “With this move, drivers are clearly able to ascertain earning and differentiate it from variable incentives,” a person directly aware of the matter said. The commission excludes taxes levied by states.

Source: Economic Times

Ebin K Gheevarghese

Ebin Gheevarghese is a Bangalore-based tech journalist. He focuses on emerging Indian startups. He can be reached at ebin@thepassage.cc.

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