Latest news with #ShaikSalauddin
Time of India
7 hours ago
- Business
- Time of India
No commissions! Ola launches new zero percent model in India; entire fare earnings to go to drivers
Ola claims that it is now India's first ride-hailing service to completely remove commission charges. The fare for your next trip on an Ola will go entirely to the driver. Ola has announced nationwide implementation of a zero percent commission structure, enabling drivers across its auto, bike, and cab services to keep their entire fare earnings. The implementation was conducted systematically, beginning with auto services, then bike services, and finally extending to cab services. Ola claims that it is now India's first ride-hailing service to completely remove commission charges. Drivers now have the flexibility to select their preferred plans whilst retaining their complete earnings, without any reductions or earning limitations. An Ola Consumer spokesperson told ET, "The launch of the zero percent commission model pan-India marks a fundamental shift in the ride-hailing business. Removing commissions empowers driver partners with much more ownership and opportunity." According to a previous report in the financial daily, Ola and Uber have adopted a subscription-based fee structure, previously introduced by Namma Yatri and Swiggy-backed Rapido, for auto rickshaw drivers. This system replaces traditional per-trip commission or booking fees with fixed daily or weekly charges, providing drivers unlimited ride access. A Telangana-based organisation representing gig workers expressed scepticism about the overall effectiveness of the latest initiative. "All aggregator companies charge subscription fees—before the ride, you must recharge. They may be removing commissions, but they already charged subscription fees from the riders," said Shaik Salauddin, founder president of the Telangana Gig and Platform Workers Union. As part of its expansion beyond transport services into automated warehousing, Ola Credit, and Ola Pay, Ola rebranded its ride-hailing division as Ola Consumer in the previous year. The company, under Bhavish Aggarwal's leadership, has seen declining revenues and multiple high-level departures during the past year. Its revenue from operations and other income across ride-hailing, financial services, and logistics decreased to Rs 2,368 crore in FY24 from Rs 3,000 crore in FY23. In December 2024, two veteran executives, Suvonil Chatterjee, chief technology and product officer, and Anshul Khandelwal, chief marketing officer, departed Ola Electric. Both executives had previously worked at Ola Cabs before joining the EV division. The company has also attracted regulatory attention. In January 2025, the Central Consumer Protection Authority (CCPA) sent notices to Ola and other ride-hailing companies regarding price differences between Android and iPhone users. In May, Union consumer affairs minister Pralhad Joshi announced that the CCPA had broadened its investigation of the advance tipping feature to include Ola Cabs and Rapido, following an earlier notice to Uber. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
10 hours ago
- Business
- Time of India
Ola launches zero percent commission model across India; drivers to keep entire fare earnings
Ride-hailing platform Ola said it has implemented a zero percent commission model nationwide, allowing its driver-partners to retain 100% of their fare earnings across autos, bikes, and cabs. With this move, Ola claims to be the first player in India's ride-hailing industry to fully eliminate commissions. The company said drivers can now choose their plans and keep the full fare amount, with no deductions or earning caps. The rollout was carried out in phases, starting with Ola Autos , followed by Ola Bikes , and now extending to Ola Cabs . Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 23.7% Returns in last 5 years with Shriram Life's ULIP Shriram Life Insurance Undo "The launch of the zero percent commission model pan-India marks a fundamental shift in the ride-hailing business. Removing commissions empowers driver partners with much more ownership and opportunity," an Ola consumer spokesperson said in a statement. As reported by ET on April 9, both Ola and Uber adopted a fee model first introduced by rivals Namma Yatri and Swiggy-backed Rapido, offering subscription-based plans to auto rickshaw drivers, instead of charging a commission or booking fee on every transaction. Under this model, platforms charge a fixed daily or weekly fee to driver partners for access to an unlimited number of rides. Live Events A Telangana-based gig workers' body questioned the broader impact of the elimination of the latest move. 'All aggregator companies charge subscription fees—before the ride, you must recharge. They may be removing commissions, but they already charged subscription fees from the riders,' said Shaik Salauddin, founder president of the Telangana Gig and Platform Workers Union. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Ola had rebranded its ride-hailing business as Ola Consumer last year, as part of a broader push into services beyond mobility, including automated warehousing, Ola Credit, and Ola Pay. The Bhavish Aggarwal-led company has faced a drop in revenue and a series of senior-level exits over the past year. For FY24, its revenue from operations and other income across ride-hailing, financial services, and logistics stood at Rs 2,368 crore, down from Rs 3,000 crore in FY23. In December 2024, Ola's two long-time senior executives, Suvonil Chatterjee, chief technology and product officer, and Anshul Khandelwal, chief marketing officer, left Ola Electric. Both had earlier worked with Ola Cabs before moving to the EV business. Ola has also faced regulatory scrutiny. In January 2025, the Central Consumer Protection Authority (CCPA) issued notices to Ola and other ride-hailing firms over differential pricing across Android and iPhone users. In May, Union consumer affairs minister Pralhad Joshi said the CCPA had extended its probe into the advance tipping feature to include Ola Cabs and Rapido, after earlier serving a notice to Uber.
The Hindu
20-05-2025
- Politics
- The Hindu
Gig workers' union seek more protections, greater accountability from aggregators
The Telangana Gig and Platform Workers Union (TGPWU) called for more safeguards for workers, including a fixed minimum payment and greater accountability from aggregators and platform companies, and sought inclusion of specific recommendations in the draft Bill for gig workers. The State government had released the draft Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Bill, 2025. The union raised concerns over the lack of transparency in algorithmic systems that determine key aspects such as ride allocations and fare structures for workers. 'While we are glad that the Bill has been ciruculated, we are particularly concerned about the algorithms used to determine rides, payouts, and other aspects of work. A vast majority of workers do not understand how these systems operate,' TGPWU office-bearer Shaik Salauddin said. 'An important aspect that we are seeking is more clarity and accountability on the part of aggregators. We also want the minimum remuneration to be included. This should take into account waiting time, fuel costs, which have escalated over a period of time, and distance,' he said. The union also sought mandatory registration of all workers at the onboarding stage, and transparency in algorithmic systems. The unions have called for removal of the expression 'primary employer', arguing that it creates ambiguity, blurs the difference between it and the aggregator. Protecting women workers from sexual harassment is another significant issue that has been sought. The TGPWU recommended that the Prevention of Sexual Harassment Act be integrated into the draft Bill. The Union stated that the draft Bill in its current form makes it unclear whether workers would be protected from sexual harassment. Mr. Salauddin said that their suggestions have received backing from Hyderabad parliamentarian Asaduddin Owaisi, who is now a member of a parliamentary delegation that will travel abroad to present to the international community India's fight against terrorism. In a letter addressed to the Labour Department, Mr. Owaisi endorsed the workers' recommendations, noting that the they would meaningfully contribute to strengthening the rights, welfare, and social security of gig and platform workers in the Telangana. Also recommended are mechanisms for dispute redressal, including provisions for appeals before a State-notified officer.
Mint
06-05-2025
- Business
- Mint
Who pays for cancelled rides? Maharashtra's new cab rules stir industry debate
Maharashtra's new policy for cab aggregators has raised concerns across the ride-hailing ecosystem, particularly over a provision for penalties if a driver cancels a booking. While the policy introduces a penalty of ₹ 100 or 10% of the fare (whichever is lower) to be credited to the rider, it is unclear whether the cost will be borne by the driver or the cab aggregator. In addition to cancellation charges, two other provisions are also expected to spark further debate: the introduction of mandatory meter pricing and a surge pricing cap of 1.5 times the base fare, which could limit driver incentives during high-demand periods such as festivals, peak hours, or adverse weather conditions. The Maharashtra government officially rolled out the Aggregator Cabs Policy 2025 on 1 May, aiming to regulate app-based cab services. The policy was developed following Supreme Court directives urging states to regulate the sector. The rules are expected to be notified later this week, Maharashtra's state officials said. Here's an overview of the provisions that have raised concern among industry players. Industry executives from the ride-hailing industry told Mint that the policy imposes an undue compliance burden on platforms that act purely as intermediaries. Since aggregators do not own vehicle fleets, they argue they lack the control necessary to manage driver behaviour around cancellations. 'Usually, it's the driver cancelling the ride—the platform has no incentive to do that. Aggregators don't own vehicles, so they cannot enforce the kind of control fleet operators can," said an executive from the industry close to the matter. Driver-led unions have also raised concerns that the cancellation clause could shift the financial burden onto drivers. 'Cancellation will likely get pushed onto drivers, further making it difficult for them to sustain their livelihood," said Shaik Salauddin, national general secretary of the Indian Federation of App-Based Transport Workers (IFAT). However, some experts said the policy introduces accountability and may be a step toward greater professionalism in the sector. 'These penalties are expected to go to the aggregators that should further pass on to the drivers, leading to more professionalism in the game. The ultimate beneficiary of this discipline-based structure is going to be the end consumer, which is a welcome move by the government," said Amit Kaushik, managing director at Urban Science, an automotive consultancy firm. Still, concerns persist about implementation. Executives noted that drivers often reject rides informally, forcing users to cancel their trip. 'Drivers can game the system—delay pickups until the customer cancels, for instance. And if I'm a driver facing cancellation penalties, I'd rather switch to a platform that doesn't charge me," said an executive representing the companies, speaking on condition of anonymity. 'Even models like Namma Yatri and Sahakar Taxi should fall under the same compliance lens. You can't regulate one segment while letting others operate freely," they added. While Mint's queries to Uber and Ola did not elicit a response, Rapido said it may remain partly unscathed. Rapido functions as a software-as-a-service (SaaS) provider, charging drivers a one-time subscription fee and taking no commission from fares. As a result, it considers itself a technology provider, not a traditional aggregator. It operates on a model where no commissions are charged from drivers, and 100% of the fare goes directly to the driver's account, 'with no intervention or settlement on the platform," a company spokesperson said. Instead, it charges drivers a one-time software subscription fee, addressing the 'dissatisfaction with high commissions charged by other platforms," the company said. 'This is akin to digitisation of offline negotiation as to an app based negotiation," the company clarified, adding that, "we don't face the problem of ride cancellation from the drivers on Rapido." The model mirrors those of other platforms such as Namma Yatri and inDrive, which also bypass the conventional aggregator structure. Also Read: Uber's lifeline off the table for BluSmart as EV depreciation becomes key contention Industry executives fear that despite the central government's Motor Vehicle Aggregators Guidelines, 2020, state-specific regulations will require aggregators to constantly adjust their software, resulting in a compliance nightmare and increased costs. 'Jurisdictionally, it will be a software nightmare. Each state-specific tweak increases the cost of compliance, which eventually makes the business model unviable. Compliance shouldn't increase to an extent where business models begin to look like charity," said an executive from the ride-hailing industry. Industry players also pointed out that the current regulatory environment may incentivise both drivers and platforms to shift toward Saas-based formats, which are largely exempt from such regulation. 'You now have models like Namma Yatri, Sahakar Taxi, and Rapido. If these continue to grow, drivers will naturally be drawn to them. The question is: Are we unintentionally pushing all aggregators to adopt this format just to avoid compliance?" said another industry official. Also Read: Rapido takes on Ola, Uber with 'low-cost' guarantee airport cab service The provision on surge cap of 1.5 times the base fare which could curb pricing flexibility during high-demand periods is also likely to backfire, experts said. 'Surge isn't just about profits—it's also how you incentivize drivers to respond to demand spikes. If the government itself uses surge pricing in other services, clearly the model has merit," said another executive, representing the companies, speaking on condition of anonymity. Surge pricing, also known as dynamic fare pricing, is implemented by the state-owned Indian Railway Catering and Tourism Corporation (IRCTC) for train tickets during peak times. In regulated industries like airlines, this pricing strategy helps manage demand and optimize service availability. The mandatory meter pricing may not be a feasible model, industry executives said, noting that customers switched to alternative platforms in the first place because traditional models were unreliable. 'Customers jumped to these platforms for two reasons: easier access to cabs and more predictable pricing. While meters are intended to make fares transparent, the lack of other technological innovations (like app-based fare estimates) still leaves consumers with an uncomfortable feeling of fare unpredictability and service availability," said an executive from the ride-hailing industry. Maharashtra state officials maintained that this policy is essential to ensure fare transparency and curb exploitation of riders. They emphasised that these new rules aim to strike a balance between consumer protection and driver welfare, improving service reliability and safety in Maharashtra's fast-growing urban mobility sector. As of now, there is no publicly announced formal feedback window for stakeholders or the public to submit comments on the policy. However, the state transport department has indicated that operational guidelines are being finalised and will be communicated to all stakeholders soon. While Maharashtra's new policy attempts to bring greater accountability and protect consumer interests, the execution will be closely watched, particularly for its impact on driver earnings, platform viability, and the broader future of app-based mobility in India. Also Read | The curious case of Ola's scooter 'sales' without invoices
Time of India
30-04-2025
- Business
- Time of India
Concerns emerge over data sharing, penal provisions in gig workers bill
Hyderabad: As the state govt seeks public feedback on the Telangana Gig and Platform Workers (Registration, Social Security, and Welfare) Draft Bill–2025, one of the primary concerns raised by aggregators is the mandatory requirement to share data related to gig workers and their earnings with the govt. Tired of too many ads? go ad free now According to sources, aggregators are also pushing for the decriminalisation of certain provisions in the draft legislation. The bill mandates that all aggregators register with the newly constituted Gig and Platform Workers' Welfare Board within 45 days of the Act's commencement. Aggregators will be required to contribute between 1% and 5% of their transaction payouts to a dedicated welfare fund. Failure to comply could attract penalties, including fines of up to ₹2 lakh, imprisonment for up to one year, or both. Lesser violations may lead to fines of up to ₹50,000. The proposed bill introduces a dual registration system: Workers may either self-register or be registered via data provided by aggregators. Aggregators are also expected to ensure transparency by clearly communicating any deductions from workers' pay and guaranteeing timely payments in line with contractual agreements. Additionally, they are required to disclose the use of any automated systems that could affect workers' earnings or employment. "Until now, there has been little to no information on how many gig workers each company employs, their working conditions, or the structure of their payments," a source said. "While aggregators are on board with many parts of the bill, mandatory data sharing and the criminalisation of some clauses remain contentious," sources said. Workers seek minimum pay On the other hand, gig workers view the bill as a step forward but believe it lacks provisions to guarantee minimum payments per task, which they consider vital for income stability. Tired of too many ads? go ad free now "This is a progressive bill, but we need more clarity and assurance on fair baseline pay for every gig—whether it's a ride, delivery, or home service job," said Shaik Salauddin, founder-president of the Telangana Gig and Platform Workers Union. "We are also demanding stronger provisions for grievance redressal mechanisms," he said.
