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Time of India
10 hours ago
- Business
- Time of India
As commissions fall, flat fee reshapes ride-hailing
Bengaluru: Ola has introduced a nationwide flat fee model for its cab-hailing business, allowing drivers to retain 100% of their earnings after paying a fixed daily access charge of Rs 67. This move replaces the long-standing commission structure, where platforms deducted 20%-30% per trip, marking a significant shift in India's ride-hailing economics. Internally, senior Ola executives acknowledge that the move is as much a response to intensifying market pressure as it is an attempt to win back disenchanted drivers. "Why Ola did this is because it is rapidly losing market share, and the network effect of supply and demand was waning for us. It's a race to the bottom, a desperate hail mary. It will eat up margins," one senior executive said. To make the math work, Ola has implemented sweeping cost cuts, shutting down its acquisition team that was 1,000 strong at its peak, reducing incentives, and relying more on automation. "We charged 20% commissions earlier, but nearly half of it went back to customer and driver incentives. In the flat fee model, we cut down incentives significantly and eliminated that cost base, making room for more tech-driven efficiency. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bu klimaların fiyatı inanılmaz – Sıcaklar bastırmadan bakın! Klimalar | Arama reklamları Şimdi Keşfet Undo These changes help us retain the same revenue potential per ride," another senior executive said. According to Saurav Kumar Chachan, associate partner at RedSeer, India's ride-hailing market is dominated by cabs, which account for roughly 50-55% of gross merchandise value (GMV), followed by auto rickshaws at about 35% and two-wheelers making up roughly 10-12%. In the top seven cities, average fares range from Rs 300-400 per trip, while in smaller cities, the average is closer to Rs 200-250. "Drivers in top metros typically complete about eight trips per day and work roughly 25 days a month, totalling around 220–240 trips per month," Chachan said. At an average fare of Rs 300 per trip, this translates to gross earnings of roughly Rs 2,400 per day or Rs 60,000 per month. Under the traditional 25% commission model, that meant a net income of roughly Rs 1,800 per day and Rs 45,000 per month for the driver. Under the new Rs 67 a day flat fee structure, net earnings rise to roughly Rs 2,333 per day and Rs 58,325 per month, offering higher potential income for active drivers. While the shift improves earnings potential for experienced drivers, it also shifts more risk to their side. "Flat fee ride-hailing models promise drivers full control over earnings, but also shift financial risk away from platforms," said Pratik Shah, partner at EY Parthenon. "For experienced drivers in high-demand areas, it can yield higher take-home pay. But for newcomers or those in low-traffic zones, it may feel more like exposure than empowerment. " Flat-fee pricing has had mixed results globally. In markets like Latin America and Southeast Asia, it has worked well in dense, high-frequency environments but faltered where trip densities remain low. According to Shah, long-term viability will hinge on platforms bundling fixed pricing with ancillary services, from insurance and financing to fuel cards and advertising, making it closer to a SaaS-like model for drivers. Ola, Uber, and Rapido are the only pan-India scaled cab-hailing platforms, and their pricing strategies have long shaped industry dynamics. Uber has so far stuck with the traditional commission model, making Ola's shift a test case for the sector. For Ola, the shift reflects both urgency and a bet that realigning incentives can restore its competitive edge.
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Business Standard
22-05-2025
- Health
- Business Standard
No commute, no excuse: Build a custom gym at home that's just right for you
You don't need a luxury penthouse to get in shape: just the will, a corner, and a solid plan. In 2025, the commute-free gym might just be your biggest fitness flex New Delhi Listen to This Article As fitness becomes a daily priority for urban Indians, the home gym is no longer a luxury, it's a lifestyle choice. Whether it's a corner in your bedroom or a dedicated workout studio, today's health-conscious professionals are investing in compact, customised fitness zones that suit their routines, budgets, and most importantly, space. According to a 2025 report by RedSeer, a strategy consulting firm, India's home fitness equipment market is growing at 12 per cent annually, with metros like Delhi, Mumbai, and Bengaluru driving most of the demand. The post-pandemic shift to hybrid working, combined with rising gym membership costs and
Zawya
03-03-2025
- Business
- Zawya
CORRECTION: DEAL 2025 to Drive Innovation and Growth in Middle East & Africa's (MEA) Leisure & Entertainment Industry
As governments across the MEA region are investing heavily to develop world-class tourism and entertainment infrastructure as part of their economic diversification strategies, the leisure and entertainment industry is experiencing a period of boom in the post-pandemic era. Driving growth for the industry are family entertainment centres (FECs) and theme parks, which are expected to record a compound annual growth rate (CAGR) of over 10% in the coming years, indicates a report by consulting company RedSeer. Moreover, the MEA gaming market is projected to surpass $5 billion by 2025, with Saudi Arabia and the UAE leading the way. DEAL 2025, the MEA region's premier leisure and entertainment exhibition, will return to Dubai World Trade Centre from April 8-10, 2025, reinforcing its role as a leading platform for excellence and industry collaboration. The event will showcase groundbreaking products, next-gen technology, and immersive experiences. Visitors will network with industry leaders such as UDC, Whitewater, Sega, Bandai Namco, Elaut, ICE, HB Leisure, Sela Group, Eurogames, Walltopia, Rainbow Productions, Teddy Mountain, Intercard, Semnox, Embed, Moser's Rides, iPlayco, Wavesurfer, Sacoa, Vekoma Rides, QubicaAMF, Huss Park Attractions, Delta Strike, Brunswick, Art Attack, Amusement Services International, Warehouse of Games and many more. Commenting on the upcoming DEAL Show, Abdul Rahman Falaknaaz, Chairman of International Expo Consults (IEC), the organiser of DEAL, said, 'Since 1994, DEAL has proudly pioneered and uplifted the leisure and entertainment industry across the MEA region. Today, DEAL is more than just an exhibition – it's a force that sparks innovation, nurtures connections and plays a pivotal role in shaping the future of fun and entertainment in the region and beyond. Together, as an industry, we promise to build a landscape that inspires and brings joy to millions.' Even after three decades and amid intensifying competition, with steadfast support from the UAE government, DEAL continues to play a key role in unlocking the regional leisure and entertainment industry's potential by connecting visionaries, innovators and stakeholders under one roof. The UAE government's support has enabled DEAL to showcase cutting-edge technologies, groundbreaking concepts and revolutionary ideas that promise to make the MEA leisure and entertainment industry even more vibrant. Register to attend DEAL 2025 to celebrate innovation, excellence and the future of entertainment. Be part of an event that inspires and shapes the future of the MEA leisure&entertainment industry. For more information, visit or contact [add contact details]. Distributed by APO Group on behalf of International Expo-Consults (IEC).
Zawya
01-03-2025
- Business
- Zawya
DEAL 2025 to Drive Innovation and Growth in Middle East & Africa's (MEA) Leisure & Entertainment Industry
As governments across the MEA region are investing heavily to develop world-class tourism and entertainment infrastructure as part of their economic diversification strategies, the leisure and entertainment industry is experiencing a period of boom in the post-pandemic era. Driving growth for the industry are family entertainment centres (FECs) and theme parks, which are expected to record a compound annual growth rate (CAGR) of over 10% in the coming years, indicates a report by consulting company RedSeer. Moreover, the MEA gaming market is projected to surpass $5 billion by 2025, with Saudi Arabia and the UAE leading the way. DEAL 2025, the MEA region's premier leisure and entertainment exhibition, will return to Dubai World Trade Centre from April 8-10, 2025, reinforcing its role as a leading platform for excellence and industry collaboration. The event will showcase groundbreaking products, next-gen technology, and immersive experiences. Visitors will network with industry leaders such as UDC, Whitewater, Sega, Bandai Namco, Elaut, ICE, HB Leisure, Sela Group, Eurogames, Walltopia, Rainbow Productions, Teddy Mountain, Intercard, Semnox, Embed, Moser's Rides, iPlayco, Wavesurfer, Sacoa, Vekoma Rides, QubicaAMF, Huss Park Attractions, Delta Strike, Brunswick, Art Attack, Amusement Services International, Warehouse of Games and many more. Commenting on the upcoming DEAL Show, Abdul Rahman Falaknaaz, Chairman of International Expo Consults (IEC), the organiser of DEAL, said, 'Since 1994, DEAL has proudly pioneered and uplifted the leisure and entertainment industry across the MEA region. Today, DEAL is more than just an exhibition – it's a force that sparks innovation, nurtures connections and plays a pivotal role in shaping the future of fun and entertainment in the region and beyond. Together, as an industry, we promise to build a landscape that inspires and brings joy to millions.' Even after three decades and amid intensifying competition, with steadfast support from the UAE government, DEAL continues to play a key role in unlocking the regional leisure and entertainment industry's potential by connecting visionaries, innovators and stakeholders under one roof. The UAE government's support has enabled DEAL to showcase cutting-edge technologies, groundbreaking concepts and revolutionary ideas that promise to make the MEA leisure and entertainment industry even more vibrant. Register to attend DEAL 2025 to celebrate innovation, excellence and the future of entertainment. Be part of an event that inspires and shapes the future of the MEA leisure&entertainment industry. For more information, visit or contact [add contact details]. Distributed by APO Group on behalf of International Expo-Consults (IEC).
Arabian Business
18-02-2025
- Business
- Arabian Business
Saudi BNPL market to hit $53bn by 2030 as Tabby readies for IPO
Saudi Arabia's 'Buy Now, Pay Later' (BNPL) market is predicted to hit a whopping $53 billion by 2030, with the easy-financing segment becoming crucial to shaping the future of fintech ventures in the kingdom, new research suggests. This comes against the backdrop of the growing buzz about a colossal valuation expected for the proposed initial public offering of Tabby after it secured a major funding round last week. Alternatively, the BNPL market size is projected to reach close to $27 billion in a modest growth scenario of four per cent annually – as against the optimistic 7 per cent growth rate for reaching $53 billion, from an estimated $8 billion last year. Tabby, the leading player in the BNPL market in Saudi Arabia, which along with Tamara controls about 95 per cent of the market, raised $160 million – a significant number considering the current tight funding scenario – at an estimated $3.3 billion valuation last week, apparently in a last funding round ahead of an IPO. This has set off speculations about the potential valuations the fintech could be eyeing as and when it launches its IPO. The $53 billion forecast about the surge in the Saudi BNPL market, predicted by RedSeer, a leading global consultancy specialising in digital services, is based on projections of the number of customers and merchants using the easy payment channel reaching 18 million and 80,000 by 2030. The market size will hit $27 billion if the numbers of customers and merchants using BNPL reach 15 million and 50,000, respectively in the base case scenario, RedSeer said. 'BNPL is undeniably shaping the future of fintech in Saudi Arabia,' Akshay Jayaprakasan, Dubai-based Associate Partner at RedSeer Strategy Consultants, told Arabian Business. 'While the model has seen mixed results globally – fluctuating between hype and scepticism – the story in Saudi Arabia has been clear and compelling,' he said. Two major players, Tabby and Tamara command 95 per cent of the market, with the remaining 5 per cent accounted for by the other 4-5 companies operating in the segment. The absence of other major fintech players in KSA allowed Tabby and Tamara to scale rapidly, capturing significant market share by capitalising on the first-mover advantage and strong merchant relationships, with compelling offerings and continued innovation, the research said. Boost in retail, services lead to surge in BNPL RedSeer said the emergence of BNPL as a most preferred purchasing mode comes amidst a surge in retail and services – both online and offline – with online purchases accounting for about 60 per cent of the market. From just digital mode, the BNPL and financing activities have grown to encompass both digital and physical shopping in e-commerce, retail and services across sectors in the last two years, enabled by some unique characteristics that make Saudi Arabia a fertile ground for BNPL to flourish, it said. Key growth pillars of BNPL in Saudi Arabia include the country's young population in the median age 32 driving higher adoption of tech-driven payment solutions like BNPL, lower credit card penetration – estimated at 17 per cent in 2021, and clear regulatory framework for BNPL platforms. 'The integration of SIMAH6 data, open banking, and national ID verification, along with clear KYC (know your customer) regulations helps KSA BNPL providers to offer credit responsibly, while scaling effectively,' the study said. Unlike rising competition challenges, economic uncertainties reducing customer spending and increased defaults and tighter funding conditions hindering BNPL platforms' growth in major markets including the US, the UK, Europe and some of the Middle East markets, the absence of other large fintechs in the face of limited issuances of licenses in Saudi Arabia help the BNPL players to thrive, it said. 'Leading players like Tabby and Tamara have thrived, driven by a well-defined regulatory framework, low credit card penetration, rising consumer spending from economic diversification, and strong KYC and credit assessment processes that keep defaults low,' Jayaprakasan said. Tabby and Tamara each are estimated to have secured around $500 million in equity funding to date. Future growth paths The RedSeer study, however, cautioned that the leading players in the segment will need to step up their game to retain customers in the wake of rising consumer maturity and other payment options. 'To continue the scorching growth so far, BNPLs must retain mature consumers with access to other financial tools,' it said. Huge expansion to cover an extensive range of merchants, efforts to evolve into comprehensive fintech platforms and moves to integrate e-commerce into their apps are some of the suggestions to players to keep up the current growth momentum. 'The market is seeing churn as the needs of customers, who are above 30, are growing. 'They also have options of credit cards, and other financial instruments, besides BNPL,' RedSeer said, suggesting that BNPL players should extend their offering to include investments, savings and mortgages. Jayaprakasan said continuous innovation by BNPL players is needed to propel the sector forward. 'Tabby, for instance, has expanded into directly enabling e-commerce with Tabby Shop, while the Tabby Card which is launched in the UAE, has the potential to solve distribution challenges and make BNPL a truly ubiquitous payment solution,' he said.
