Ola incentives lure drivers, numbers rise 10% after pay structure review

Ola’s rework of pay structures has paid off as the number of drivers with the platform rose by 7 percent to 10 percent in metro cities, The Economic Times reported.

Ola now takes 20-22 percent on average and allows drivers to not only view their own pay, but check the tolls, taxes, commissions and parking charges deducted, a source told the paper.

Moneycontrol could not independently verify the report.The paper viewed a Bengaluru drivers’ dashboard, which showed that Ola charged 20 percent as commission on fare, 5 percent tax and 5.5 percent for on-board entertainment Ola Play (consumer service fee). Airport rides also charge for parking, while tolls are reimbursed to drivers.

Ride-sharing platforms such as Ola and Uber have struggled to retain drivers as decreased incentives have lowered pay cheque amounts, it noted. Ola has close to two million registered drivers on its platform.

Attrition of drivers is a major concern for such companies as steady numbers mean keep incentives under check, especially with customers willing to pay shell out higher amounts during peak hours, a mobility segment expert told the paper.

But, an Ola investor told the paper that Uber’s focus on global markets could bode well for Ola, allowing it to make domestic inroads and “balance growth with profitability”.

Besides, drivers told the paper that Uber had not changed incentives yet. The company also sold loss-making UberEats to Zomato. It is now expected to go full-throttle on its ride business. The paper viewed a Bengaluru drivers’ dashboard, which showed that Ola charged 20 percent as commission on fare, 5 percent tax and 5.5 percent for on-board entertainment Ola Play

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