Commission (take rate)
The share of each transaction a marketplace keeps, taken as a percentage or a fixed fee, or replaced by a plan the provider pays for upfront.
Updated October 2026 · with examples from our own builds
What does commission mean in practice?
Commission is how most marketplaces earn: the customer pays, the platform keeps its share and the rest goes to the provider. Alternatives include prepaid plans that replace per-transaction commission, or a mix that lets providers choose.
The model shapes provider behaviour and unit economics. A percentage is simple and scales with value; a prepaid plan rewards busy providers but only works if the cost of serving their transactions stays below what the plan brings in.
In the system, store the rate used on each transaction alongside it, so a rate change applies going forward and old earnings stay explainable.
Commission at a glance
- Models
- Percentage, fixed fee or prepaid plans
- Store with each sale
- The rate that was applied
- Check
- That plans still cover the cost of the busiest providers
Where has commission come up in our builds?
Drivers work either on a prepaid plan with no per-trip commission while it runs, or on commission, and a new driver starts on commission and unlocks plans after a set amount of delivered business. Because cost follows trips rather than fare, plans now carry trip caps for two- and three-wheelers.
Each ledger entry stores the commission rate it used, so a rate change applies forward only.
The platform's commission on bookings defaults to 20%, and each country's Market record may override it.
Common questions about commission
Should my marketplace charge commission or a subscription?
It depends on how providers work. Commission suits occasional, varied transactions; a plan suits busy providers who dislike paying per job. If you offer plans, check the cost of serving your busiest providers before setting the price.
What happens to past earnings when I change the commission rate?
Nothing, if each transaction stored the rate it used. The new rate then applies only to new sales, and every past figure can still be explained.
Related terms
Planning a product and not sure where commission fits? Ask us, or browse all 116 terms in the glossary.