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Time of India
4 hours ago
- Business
- Time of India
As commissions fall, India's ride-hailing firms test viability of flat-fee economics
BENGALURU: Ola has rolled out a nationwide flat‑fee model for its core cab‑hailing business, allowing drivers to keep 100% of their earnings after paying a fixed daily access charge of Rs 67. The move replaces the long‑standing commission structure, where platforms deducted 20-30% per trip and marked 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 out for us. It's a race to the bottom, a desperate hail‑mary. It will definitely 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 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've cut down incentives significantly and eliminated that cost base, making room for more tech‑driven efficiency. These changes help us retain the same revenue potential per ride,' another senior executive said. According to RedSeer data shared by 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, totaling 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. Earnings Comparison Metric Commission Model (25%) Flat‑Fee Model (Rs 67/day) Avg. trips per day 8 8 Avg. fare per trip Rs 300 Rs 300 Gross daily income Rs 2,400 Rs 2,400 Platform deduction per day Rs 600 Rs 67 Net daily income Rs 1,800 Rs 2,333 Net monthly trips* ~230 trips ~230 trips Net monthly income Rs 45,000** Rs 58,325** ~25 working days **Includes vehicle EMIs and operational costs of fuel, car servicing Source: Redseer for TOI 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 re‑aligning incentives can restore its competitive edge. 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
a day 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).
