Ola and Uber, renowned for their cab and autorickshaw services, have rolled out subscription plans specifically tailored for autorickshaw drivers operating on their platforms.
This strategic move aims to waive booking fees and commissions, enhancing competitiveness against emerging rivals like Namma Yatri and Rapido, backed by Swiggy investments.
Geographic Expansion of Subscription Plans
Ola initiates subscription plans in key metropolises such as Delhi-NCR, Mumbai, Bengaluru, and Hyderabad, while Uber extends its offering to six cities including Chennai, Kochi, and Visakhapatnam.
Tax Implications and Regulatory Challenges
While the subscription plans exempt Ola and Uber from the five percent Goods and Services Tax (GST) on autorickshaw rides, potential disputes with tax authorities loom.
An advance tax ruling last September exempted Namma Yatri from GST collection on autorickshaw rides, hinting at possible regulatory hurdles.
Revenue Model Transition
Ola and Uber traditionally operate on a commission-based revenue model, levying booking fees or commissions per ride.
Ola’s decision to exit the Australian, British, and New Zealand markets underscores a strategic shift, prioritizing the burgeoning opportunities in the Indian market.
Growth Trajectory and Financial Performance
Ola Mobility spokesperson highlights the rapid growth of their ride services business, emphasizing the imminent electric mobility era and expansion prospects within India.
ANI Technologies, backed by Softbank investments, witnessed a decline in net loss to approximately Rs 772.25 crore in the financial year 2023, down from Rs 1,522.33 crore in the previous year.
Despite the challenges posed by the pandemic, consolidated revenue surged by nearly 48 percent to Rs 2,481.35 crore in the financial year 2023.
