Despite being launched almost a decade ago, giants like Ola and Uber have struggled to find ways to increase their revenues in India. They have experimented with various strategies, from surge pricing to tablets in cars, but none seemed to hit the mark.

Enter Namma Yatri, a game-changer driven by the Auto Rickshaw Driver Union (ARDU), presenting an open-source alternative for booking auto rides directly with drivers. Recently, Namma Yatri celebrated a milestone of 5 million trips in Bengaluru alone.

Backed by the Nandan Nilekani-led non-profit Foundation for Interoperability in Digital Economy and developed by Juspay, Namma Yatri aims to scale its growth by joining the Open Network for Digital Commerce (ONDC) network, an initiative by the Government of India to democratize digital commerce.

Not like Ola and Uber

Uber and Ola take a cut of around 20% from what drivers make on each ride. However, Namma Yatri works differently. It’s a “Direct-to-Driver” app, meaning it doesn’t take any commission. Whatever you pay for a ride goes entirely to the driver and their family.

Namma Yatri follows the pricing rules set by the Karnataka Government. Generally, for longer trips, it’s cheaper than other apps. But for short trips, it might cost a bit more because of pickup fees (Rs 10) and extra driver requests.

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What sets Namma Yatri apart?

Cutting Technology Costs: By reducing infrastructure costs, including map integration and payment systems, Namma Yatri aims to streamline operations and minimize overhead.

Enhanced Features: From driver onboarding to route optimization, Namma Yatri’s product roadmap promises a user experience that rivals established players.

Subscription-Based Pricing: Instead of hefty commissions, drivers pay a monthly fee and a percentage of payment gateway charges, aligning incentives and fostering long-term partnerships.

Minimal Marketing Spend: Namma Yatri relies on word-of-mouth and incentivized referrals rather than splashy ad campaigns, allowing it to focus resources on service quality.

Driver Referral Program: Leveraging the power of its network, Namma Yatri rewards drivers for referring both customers and fellow drivers, fueling rapid adoption.

Emphasis on Safety: Learning from industry leaders like Uber and Ola, Namma Yatri prioritizes safety features for both drivers and passengers, building trust through transparent ratings.

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But how does Juspay profit from this venture?

Surprisingly, it’s not through ride-hailing but rather by extending financial services to auto drivers. By offering loans, Juspay taps into a lucrative market while supporting the livelihoods of drivers.

Slow service?

Namma Yatri promised fair prices without sudden increases. But now, customers are reportedly upset because getting a ride is slow unless they add extra money as a tip. Before, the most you could tip was Rs 30, but now it’s gone up to Rs 50.

Reports say that Namma Yatri doesn’t take a cut from drivers’ earnings like other apps. So, drivers wait for tips to make more money. They only find out about the fare after a tip is added, which delays things.

However, Namma Yatri officials say most rides don’t need tips, but during busy times or short trips, tips help drivers accept rides faster.

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