# Cab drivers could earn Rs 1.36 lakh more under zero-commission model

2026-08-15T02:08:16+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

A new study by the Open Network for Digital Commerce (ONDC) says India's cab drivers could take home up to Rs 1.36 lakh more each year if ride-hailing platforms switched to a zero-commission, software-as-a-service (SaaS) model. Instead of surrendering 20-30% of fares to aggregators like Uber and Ola, drivers would pay a flat software subscription fee and keep all their earnings. The study argues that open-network systems would also improve service in smaller cities. But the model faces a tax hurdle. Under Section 9(5) of the GST Act, e-commerce platforms are liable for GST on passenger transport, a rule designed for commission-based apps that control fares. SaaS platforms have no visibility into what passengers pay drivers, and Karnataka's advance rulings have been contradictory. Nearly 90% of drivers surveyed said their income depends on platform work.

## Coverage

- economictimes.indiatimes.com <https://economictimes.indiatimes.com/news/company/corporate-trends/indias-ride-hailing-industry-weighs-zero-commission-as-drivers-eye-rs-1-36-lakh-more/articleshow/133246076.cms>

Tags: GST, Ola, ONDC, SaaS, Uber
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