Ola, Uber Starts Subscription Plans for Auto drivers

Ola and Uber, which provide cab and autorickshaw services through apps, have offered subscription plans for autorickshaw drivers on their platforms. In this, autorickshaw drivers will not have to pay booking fees or commission on each transaction. This will make it easier for Ola and Uber to compete with Namma Yatri and Rapido, which has been invested by Swiggy.

A media Report It has been stated that over the past few weeks Ola has launched a subscription plan for autorickshaw drivers in some major cities including Delhi-NCR, Mumbai, Bengaluru and Hyderabad. Uber has launched it in six cities like Chennai, Kochi and Visakhapatnam. This will save Ola and Uber from paying 5 per cent Goods and Services Tax (GST) on autorickshaw rides. However, tax experts say this could lead to disputes between these operators and tax authorities. An advance tax ruling in September last year said that Namma Yatri will not have to collect GST on autorickshaw rides.

Ola and Uber have a commission-based revenue model in which these companies charge a booking fee or commission fee on each ride or booking. Ola has decided to shut down its services in Australia, UK and New Zealand. Ola’s promoter ANI Technologies said that it will continue to focus on India’s business. This company, which has investment from Japan’s Softbank, sees a lot of opportunities for expansion in the country.

Regarding this, a spokesperson for Ola Mobility said, “Our ride services business is growing rapidly. We are the first in this segment in the country. The coming era of mobility is electric. There are a lot of opportunities for expansion in the country. We have re-evaluated our priorities and have decided to shut down our ride services business in Australia, New Zealand and the UK.” The company started business in these markets about six years ago. In the financial year 2023, the net loss of ANI Technologies was reduced to about Rs 772.25 crore. In the previous financial year, it was Rs 1,522.33 crore. In the financial year 2023, the consolidated revenue of the company increased by about 48 percent to Rs 2,481.35 crore. In the previous financial year, the revenue was Rs 1,679.54 crore.