Namma Yatri, the mobility app, on Tuesday announced the launch of cab services in Bengaluru. Addressing the prevalent issues of high commissions and lack of transparency, Namma Yatri said it is dedicated to a lifetime zero-commission, direct-to-driver model. This platform said that this strategic shift not only enhances driver income but also fosters improved vehicle maintenance and elevated customer experiences.
The platform unveiled subscription plans for cabs: free until 1 October and thereafter Rs 90 daily for unlimited rides. Namma Yatri already has 25,000 cab drivers and aims to onboard over one lakh drivers in the next six months.
“We are dedicated to empowering drivers through cutting-edge technology at an optimal cost, fostering satisfaction among both drivers and commuters,” said Magizhan Selvan, chief executive officer at Namma Yatri. “We have received strong support from the cab driver community. Our driver wellness programs, initiatives for safety and sakkath-service are adapted for the cab driver community. Ensuring driver satisfaction translates directly into providing the best service to valued customers,” added Selvan.
With this service, Namma Yatri is competing with players such as Uber and Ola, which charge some commission to the driver partners. Industry sources said Namma Yatri is following the recent trend of coming up with a zero-commission model. However, there are issues like the platform taking up less responsibility as it is a marketplace compared to Uber and Ola, which are cab aggregators. There are also issues related to bypassing local laws including state permits and moving from the organised to the unorganised sector.
Namma Yatri operates within the government-backed Open Network for Digital Commerce (ONDC) network, offering 100 per cent open data and open-source code. Namma Yatri said it takes the lead as the first app to embrace the latest Pricing Guidelines set forth by the Karnataka government. The platform said this commitment ensures fair pricing practices, eliminating unjustified surge pricing during peak hours for the benefit of customers and drivers alike.
“Their community-centric approach and pioneering efforts in driver welfare set a commendable precedent,” said Ramalinga Reddy, minister of transport and muzrai, government of Karnataka, at the launch event. “I applaud their commitment to innovation, transparency, and inclusivity, and wish them success with the cab service launch.”
The platform said that Namma Yatri’s cabs, like its autos, would prioritize transparency and efficiency. It offers cab services – Non-AC Mini, AC Mini, Sedan and XL Cab, catering to diverse customer needs. Non-AC Mini Cab, a unique addition, addresses frequent misunderstandings between drivers and customers regarding AC usage. It sets clear service expectations and competitive pricing for budget-conscious customers while promoting eco-friendly rides. The app will soon introduce inter-city, rentals, scheduled rides and open up across Karnataka. It will also accommodate special requests like disability-friendly rides, extra luggage, travelling with pets, and trips to public transport hubs.
Shaik Salauddin, elected national general secretary, The Indian Federation of App-Based Transport Workers (IFAT) said that Namma Yatri has developed a direct-to-driver, open mobility platform to empower the community and offer fair pay and mutual respect.
“It will amplify welfare schemes for gig and platform workers,” said Salauddin.
With its community-led approach, Namma Yatri said it is committed to fast pickups, low cancellations, affordable prices, and reliable service. As the platform continues to grow, it remains focused on fostering a sustainable and inclusive transportation ecosystem that benefits all stakeholders.
India is projected to witness a substantial growth in the Ride-hailing market in the coming years. It is estimated that the revenue in this market will rise to $6.68 billion in 2024, according to data platfrom Statista. Furthermore, the market volume is expected to reach $7.36 billion by 2028, displaying an annual growth rate of 2.45 per cent during the period of 2024-2028. As of 2028, the number of users in the ride-hailing market is predicted to be 287.40 million users, according to Statista. The user penetration rate is expected to increase from 17.6 per cent in 2024 to 19.3 per cent in 2028.
Namma Yatri’s network between commuters and drivers has resulted in over 25 million trips, Rs 420 crore in direct earnings for drivers, and a user base of 60 lakh.
