Ola's Shift To Subscription In Maharashtra May Set National Precedent: SEBI RA Nikhil Gangil

Earlier this week, Ola Electric Mobility (Ola) launched a nationwide zero‐commission model across all vehicle segments. 

This model allows drivers to keep 100% of their fare earnings by opting for a fixed-fee subscription plan instead of per-ride charges. The daily subscription rate for autos in Maharashtra is ₹29 per auto.

While the move will benefit drivers and Ola services users, it could be tough for the company, said SEBI-registered analyst Nikhil Gangil.

Ola may earn less revenue from each ride under the new zero-commission model, Gangil added.

At the time of writing, Ola Electric shares were up 0.6% at ₹45.77. Year-to-date (YTD), the stock has fallen by over 46%. 

On the upside, the subscription model enables drivers to retain a greater share of their daily income, as Ola will no longer deduct commissions. Under the previous system, auto drivers were reportedly losing up to 35% of their daily earnings to Ola.

This will also reduce booking and payment hassles for users as auto drivers will be more inclined to accept rides through the app.

The move follows similar steps taken by rivals Uber, Rapido, and Namma Yatri. Namma Yatri introduced the subscription-based model in 2023, offering flat fees of ₹25 for autos and ₹45 for cabs in cities like Bengaluru and Chennai.

Rapido adopted a SaaS-based approach in 2024, with subscription fees ranging from ₹9 to ₹59, depending on the vehicle type and location. Uber had rolled out a subscription-based model for auto drivers in February.

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