When you book a cab on a ride-hailing app, more often than not you would get a call from the driver asking your destination or preferred payment method. Many customers have complained how a wrong answer to either of the two would often result in a cancellation. These two questions have posed challenges for ride-hailing companies, as driver cancellations not only incur costs for the company but also disrupt the user experience.
Now, to make things easier, Ola has introduced two new features in its app. This allows customers to pay drivers directly using UPI. This feature will first launch in Bengaluru at the end of this week and will be available nationwide by the end of December.
The company said it aims to simplify the payment process for users by eliminating the need for third-party payment apps. Ola's CEO, Bhavish Aggarwal, announced the update on November 30, highlighting the convenience of using UPI for direct payments to drivers within the Ola app.
Aggarwal took to X (Previously Twitter) and wrote, “ Addressing the 2nd most popular question I get - Why does my driver cancel my Ola ride? We're taking steps to fix this industry-wide issue. Ola drivers will now see the approximate drop location & payment mode before accepting a ride. Enabling drivers is key to reducing cancelations.”
Addressing the 2nd most popular question I get - Why does my driver cancel my Ola ride?!!— Bhavish Aggarwal (@bhash) December 21, 2021
We're taking steps to fix this industry wide issue. Ola drivers will now see approx drop location & payment mode before accepting a ride. Enabling drivers is key to reducing cancelations. pic.twitter.com/MFaK1q0On8
Users can set up a UPI ID, link their bank accounts, and make payments seamlessly without using external payment apps.
Ola Cabs is introducing a convenient UPI payment feature that allows users to enter their UPI PIN for secure transactions after each ride. This eliminates the need for entering card details, IFSC codes, or recharging wallets, providing a hassle-free payment experience. Customers can also opt to scan the QR code displayed by the driver in the app. Ola anticipates that more than 2 million customers will quickly join the UPI platform due to this initiative.
Notably, Namma Yatri, a new player in the ride-hailing industry, offers a similar feature powered by Juspay, enabling users to make direct payments to drivers without using a third-party app.
As per the news reports Ola Cabs' integration of the UPI plugin aligns with its upcoming collaboration with the government's digital commerce network, the Open Network for Digital Commerce (ONDC). This partnership aims to extend last-mile delivery services to sellers on the Ola platform.