How Ola ensures its drivers are not poached

BENGALURU: Motorist on ride-hailing platform Ola have spiked 7-10% in seven metro cities, after the homegrown aggregator rolled out rewritten standardised boards to keep drivers active during peak hours, two people directly in the know of the matter told ET.The brand-new payout structure, with an average take rate of 20% for the company, dedicates motorists a more predictable and transparent view of earnings as well as accusations on tolls, taxes , commissions and parking. ET firstly reported Ola’s revamped incentive structure on January 6. An Ola spokesperson demonstrated the new commissions structure.Retaining drivers has been a tough task for both Ola and rival Uber as falling incentives have led to lower earnings. The revamped payout is Ola’s strongest push in two years to keep drivers on its side, “theyre saying”. “It likewise strategically comes at a time when Uber has moved its focus towards profitable proliferation globally, rendering Ola the leeway to strengthen its presence in its home market, ” an investor in the company said. Uber has not visibly changed its motivations, motorists told ET. “Ola’s earnings structure for partners is designed to maximise revenue and encourage highest quality of service and availability on the platform, in a sustainable way …, ” the Ola spokesperson said.Both Ola and Uber continue to fight for customer purses but retaining the supplying of drivers consistent has been their biggest issue. “At a day when automobile ownership is falling, customers are willing to pay more for predictable supply during peak hours, ” a person closely tracking the mobility space said. “The key to this business is keeping active driver supplying with incentives under check, ” he added.An Ola driver dashboard of a trip-up in Bengaluru that ET retrieved showed that the company charged a commission of about 20% on the menu, 5% in taxes, as well as a consumer service fee of 5.5% for its in-app entertainment Ola Play. Rides to the airport have an additional parking charge which is subtracted from earnings, while Ola repays toll charges.

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“Over the last three months, a lot of bottoms-up research and demand-supply mapping work has been done to frame these structures in such a way that, on average, Ola keeps its take rate at 20 -2 2 %. Drivers, too, recognize appreciate in being active on the platform at the right time, ” the second person quoted earlier who is familiar with the developments said.The revised arrangement is not expected to hurt its path towards profitability, he added. “Balancing growing with profitability is where the influence of platform comes into play, ” the Ola investor quoted earlier in the tale said. Ola has other examples to make money for equestrians, including its membership program Ola Select, in-ride entertainment Ola Play and financial services. It also has a strong presence in the corporate segment and high boundary jobs like outstation and self-drive.Ola’s decision to rejig its motivations structure comes at a time when rival Uber has sold its loss-making food delivery unit in India to Zomato and is expected to ramp up focus on its core ride-hailing business.“We constantly ensure sustainable earnings opportunities for our driver-partners … These menus are dynamic, as is our business model, ” an Uber spokesperson said.

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